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Angela Rayner has admitted she did not pay the right amount of stamp duty on the purchase of her second home and has referred herself to the independent adviser on ministerial standards.
Speaking to Sky News’ political editor Beth Rigby on the Electoral Dysfunction podcast, the deputy prime minister became tearful as she claimed she received incorrect tax advice and spoke to her family about “packing it all in”.
Ms Rayner, who is also the housing secretary, has been under scrutiny after a report in The Daily Telegraph claimed she avoided £40,000 in stamp duty on a flat in Hove by removing her name from the deeds of another property in Greater Manchester.
In a lengthy statement released today, she said it was a “complex living arrangement” as her first home was sold to a trust following her divorce to provide stability for her teenage son, who has lifelong disabilities and is the sole beneficiary of the trust.
She said initial legal advice was that the standard rate of stamp duty applied, but following media reports, she sought expert counsel who said more tax is due.
She added that these matters were confidential but she applied to a court yesterday to get this lifted in the interests of public transparency.
In a subsequent interview with Beth Rigby, a visibly upset Ms Rayner said: “I’ve been in shock, really, because I thought I’d done everything properly, and I relied on the advice that I received and I’m devastated because I’ve always upheld the rules and always have felt proud to do that.
“That it is devastating for me and the fact that the reason why those confidential clauses were in place was to protect my son, who, through no fault of his own, he’s vulnerable, he’s got this life changing, lifelong conditions and I don’t want him or anything to do with his day-to-day life, to be subjected to that level of scrutiny.”
Asked if she thought about quitting rather than disclose the details about her son, the cabinet minister added: “I spoke to my family about it. I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”
PM backs Rayner
Her comments came shortly before the first PMQs following the summer recess. Tory leader Kemi Badenoch said Sir Keir Starmer should fire his deputy.
“If he had backbone, he would sack her,” she said.
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2:09
Starmer defends Rayner amid calls for sacking
However, the prime minister defended Ms Rayner, saying he is “very proud” to sit alongside her.
“She’s gone over and above in setting out the details, including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son,” the prime minister said.
“I am very proud to sit alongside a deputy prime minister who is building 1.5m homes, who is bringing the biggest upgrade to workers’ rights in a generation, and has come from a working-class background to become deputy prime minister of this country.”
Key points from Rayner statement
In a lengthy statement, Ms Rayner said that following the divorce from her husband in 2023, they agreed to a nesting arrangement where their children would remain in their family home, in Ashton-under-Lyne, while they alternated living there.
She said she sold her interest in that home to a trust earlier this year, before buying the property in Hove.
The trust was originally set up in 2020 to manage a payment to one of her sons after a “deeply personal and distressing incident” as a premature baby that left him with lifelong disabilities
The home had been adapted for her son and the sale to the trust was to give him “the security of knowing the home is his”, Ms Rayner said.
She went on to say that she did not own any other home when she bought the flat in Hove, and her understanding “on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty”.
She added: “However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions.
“I have now been advised that although I did not own any other property at the time of the purchase, the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities.”
Ms Rayner said she is working with HMRC to establish what is owed, claiming her arrangements “reflect the reality that family life is rarely straightforward”.
She concluded: “I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands.
“It is for that reason I have today referred myself to the Independent Adviser on Ministerial Standards, and will provide him with my fullest cooperation and access to all the information he requires.”
Watch and listen to the full Electoral Dysfunction interview on Wednesday afternoon – www.podfollow.com/electoraldysfunction
https://wol.com/angela-rayner-admits-she-should-have-paid-more-stamp-duty-on-flat-purchase-and-considered-resigning-politics-news/
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