Angela Rayner admits tax mistake on 800k Hove home but refuses to resign

"Deputy Prime Minister Angela Rayner has admitted she underpaid tax on her £800,000 Hove property, conceding she made a "mistake" but insisting she acted in good faith on legal advice. Speaking to Sky News' political editor Beth Rigby, Rayner confirmed reports that she failed to pay the full amount of stamp duty on her second home, a liability estimated at around £40,000. She said she has now referred herself both to HMRC and to the independent adviser on the ministerial code."

"Rayner explained that the error stemmed from a complex trust arrangement established in 2020 to provide for her son, who has lifelong disabilities. The trust was set up by a court as part of an award following an injury, with a legal trustee managing the property that had been adapted for her son's needs. When Rayner divorced in 2023, she said the trust assumed ownership of the family home so both parents could continue to use it while caring for their children."

"She told Rigby she had relied on advice that she was only liable for standard stamp duty because she technically owned one property. But subsequent expert counsel concluded she should have paid the additional rate due to the nature of the trust. 'As soon as I knew that was the case, I alerted HMRC and referred myself for independent scrutiny,' she said. 'The trust was set up by a court to provide for my son after an injury,' she said."

A stamp duty underpayment arose after a complex trust arrangement created in 2020 to provide for Rayner's son became the legal owner of the family home following a 2023 divorce. Rayner withdrew remaining equity and purchased an £800,000 Hove property with a mortgage. She relied on legal advice that she was liable only for standard stamp duty because she technically owned one property, but later expert counsel concluded the trust's nature required the higher additional rate. Rayner alerted HMRC, referred herself to the independent adviser on the ministerial code, rejected accusations of deliberate tax avoidance, and described the episode as devastating.

Read at Business Matters