Angela Rayner’s previous family residence was appraised at a higher value than nearby homes that were listed for sale when she disposed of her share to finance the acquisition of an extravagant seaside apartment, according to reports.
The former deputy prime minister, who resigned from the government today, sold a 25 percent interest in the Ashton-under-Lyne property for £162,500 to a trust set up for her disabled son earlier this year, based on a full house valuation of £650,000.
This amount was utilized to purchase the apartment in Hove, which has stirred significant controversy this week following Ms. Rayner’s admission of underpaying stamp duty by £40,000.
She stepped down today after an ethics inquiry concluded that she violated the ministerial code of conduct by not ensuring she paid the correct amount.
The £650,000 estimate for the four-bedroom house has already raised questions, as it precisely meets the threshold at which inheritance tax becomes applicable on personal assets.
However, an examination of recent sale prices in Greater Manchester, where Ms. Rayner has served as the MP since 2015, indicates that this estimate significantly exceeds the value of comparable properties in the area.
An online valuation tool on the Website Rightmove values the Rayner property at £565,000.
The most expensive sale of a house within a mile of the Ashton property in the past year was £561,000, which was a five-bedroom semi.
The most recent sale of a four-bed detached house within a mile of her property was in May this year, when it fetched £425,000.
The average price of a detached home in her postcode area in August was £355,653, the website revealed, though this does not take into account the number of bedrooms.
The Deputy PM sold a 25 per cent stake in the Ashton-under-Lyne property for £162,500 to a trust established for her disabled son earlier this year, based on a valuation of £650,000 for the whole house.
Ms Rayner dramatically exited the Cabinet today after a sleaze report into her property dealings found she did break the ministerial code.
She reigned her posts as deputy PM, housing secretary and deputy Labour leader after Sir Laurie Magnus delivered his verdict to Keir Starmer.
Sir Laurie concluded that Ms Rayner had acted with ‘integrity’ but still fell short of the highest standards required in government.
In a letter to Sir Keir, she said that she was resigning from government and her party job, stressing the ‘strain’ that the furore had put on her family.
Downing Street released a handwritten response from the premier saying he was ‘sad’ about the circumstances because Ms Rayner has ‘given your all’, but it was the ‘right decision’.
The crucial moment came after furious lawyers accused Ms Rayner of trying to make them ‘scapegoats’ for her underpaying tens of thousands of pounds in stamp duty.
Ms Rayner’s hold on her job had been looking increasingly tenuous after Sir Keir refused to rule out sacking her yesterday, insisting he would ‘act’ on the findings from Sir Laurie.
The departure is another massive blow for the PM, already struggling to stabilise his government after a torrid summer of immigration protests.
She has also resigned as deputy Labour leader – a separate elected post – triggering what could be a deeply divisive contest.
Bizarrely, even as Ms Rayner’s demise emerged this morning the PM’s official spokesman was still insisting Sir Keir had ‘full confidence’ in her.
Sir Laurie Magnus is investigating whether Ms Rayner broke the ministerial code, following her admission that she did not pay enough stamp duty on a flat she bought in Hove (pictured) this year
Managing director Joanna Verrico (pictured today) said: ‘We acted for Ms Rayner when she purchased the flat in Hove. We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for’
Sir Laurie said in his report: ‘Given the conjunction of the acknowledged complexity of her family circumstances, her position in Government (most importantly as Deputy Prime Minister) and the consequences of getting such a calculation wrong, it is deeply regrettable that the specific tax advice was not sought.
‘I believe Ms Rayner has acted with integrity and with a dedicated and exemplary commitment to public service.
‘I consider, however, that her unfortunate failure to settle her SDLT liability at the correct level, coupled with the fact that this was established only following intensive public scrutiny, leads me to advise you that, in relation to this matter, she cannot be considered to have met the ‘highest possible standards of proper conduct’ as envisaged by the Code.
‘Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the Code to have been breached.’
Senior figures have spent the past few days rallying around Ms Rayner since her extraordinary admission that she had failed to pay enough stamp duty.
Some have even suggested she is being persecuted for her working class background.
The row escalated again last night after high street conveyancing firm Verrico & Associates insisted they had acted ‘on the figures and the information provided by Ms Rayner’.
In a withering condemnation, the family firm’s 82-year-old managing director Joanna Verrico said they were being made scapegoats and added: ‘I have got the arrows stuck in my back to show it.’
