Angela Rayner was fighting for her political future today after admitting she didn’t pay enough stamp duty on her new seaside flat.
The Deputy Prime Minister said she ‘deeply regrets’ the error made when purchasing her £800,000 apartment in Hove, East Sussex.
In an emotional television interview, a distraught Ms Rayner shared that she has self-referred to an ethics watchdog to determine if she breached ministerial guidelines.
The 45-year-old, also serving as the Housing Secretary, mentioned she has informed HMRC of her additional tax obligation and is ready to pay the outstanding amount.
She also admitted she had discussed resigning from her Government role with her family, amid days of intense scrutiny over her property arrangements.
Ms Rayner has referred herself to Sir Laurie Magnus, who is Prime Minister Sir Keir Starmer’s independent adviser on ministers’ interests.
The Tories said it was ‘utterly extraordinary’ that Ms Rayner had failed to pay enough tax on her property purchase.
“It’s astonishing that while families and businesses are burdened by Labour’s tax increases, Angela Rayner failed to pay the correct stamp duty,” stated shadow chancellor Sir Mel Stride.
‘The Deputy Prime Minister should not be setting the rules when she fails to keep them herself.’
Ms Rayner’s own department has warned against the impact of second homes in pricing others out of the housing market.
The Labour deputy leader has also repeatedly hit out at ‘tax dodgers’ during her years as an MP in the House of Commons.
This parallels her previous call for Nadhim Zahawi to be dismissed as Tory chairman in 2023 after it became public that his tax matters were being investigated by HMRC.
The Deputy PM has been dubbed ‘Three Pads’ Rayner following her purchase of the Hove flat.
Reports indicate she avoided £40,000 in stamp duty on the flat by removing her name from the property deeds of a family home in Ashton-under-Lyne, Greater Manchester.
Altering the deeds reportedly enabled Ms Rayner to pay £30,000 in stamp duty instead of £70,000, which would have been due if the Hove property was considered her secondary residence.
But the Hove flat is not her ‘main residence’ for council tax purposes, with the Ashton-under-Lyne home remaining her primary residence.
This is said to save some £2,000 in council tax on her third home, a three-bedroom grace-and-favour flat in Admiralty House.
Angela Rayner has referred herself to an ethics watchdog after admitting she didn’t pay enough stamp duty on her new seaside flat
The Deputy Prime Minister said she ‘deeply regrets’ the error made when purchasing her £800,000 apartment in Hove, East Sussex
The Tories said it was ‘utterly extraordinary’ that Ms Rayner had failed to pay enough tax on her property purchase
Ms Rayner was backed by Sir Keir at Prime Minister’s Questions in the House of Commons this afternoon.
As she sat alongside him on the Government front bench ahead of the session, Sir Keir placed a supportive hand on Ms Rayner’s shoulder.
It came shortly after the Deputy PM had given an emotional TV interview, while also releasing a statement to admit she had underpaid tax.
Ms Rayner said she had been ‘in shock’ and ‘devastated’ over the fallout from the row over her property arrangements.
Asked whether she had considered resigning, the Deputy PM told Sky News: ‘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 done.
‘And always felt proud to do that. I feel, you know, 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 because it’s his and my ex-husband that is… it’s not fair on them.
‘Often my family dragged in because of what my role is and what I do.
‘But I try to uphold the high standards, and that’s why I’ve referred myself so that the independent advice can look at everything.’
Pressed again on whether she had considered standing down, she said she had ‘spoken to my family about it’ and ‘the number one priority for me and my ex-husband has always been to support our children and do the best thing for our children’.
Ms Rayner said in a statement: ‘When purchasing the property my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.
‘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.
‘I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase.
‘I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.’
She added: ‘The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce, and the complexities of ensuring your children’s long term security.
‘Every decision I have made has been guided by what I believe to be in my children’s best interests.
‘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.’
More to follow…
