UK (Parliament Politics Magazine) – Deputy PM Angela Rayner admits underpaying stamp duty on £800K flat, refers herself to ethics adviser and works with HMRC to pay dues.
As reported by The Guardian, Angela Rayner acknowledges underpaying stamp duty on her £800,000 coastal property amid calls for transparency.
How much does Angela Rayner owe after underpaying stamp duty?
The deputy prime minister has admitted incorrectly paying the lower rate of stamp duty on her Hove flat. She has referred herself to the prime minister’s ethics adviser, and experts warn the owed tax could reach £40,000.
The housing secretary’s admission of underpaying tax comes as Labour trails in polls, struggling to convince voters it stands for working people.
Ms Rayner may face accusations of hypocrisy as the government plans to increase property taxes in the upcoming autumn budget.
What did Angela Rayner say about her stamp duty error?
In a statement to The Guardian, Angela Rayner admitted she “deeply regretted” the mistake. She had bought the flat as her only property, despite spending much of her time with her children at the family home in Ashton-under-Lyne.
Ms Rayner said,
“While I do not find it easy to publicly discuss personal and sometimes distressing family matters, I have always taken my responsibility as an MP and deputy prime minister seriously and tried to be as open as possible while protecting my family.”
She stated,
“To address the allegations made against me, I have now taken the difficult decision to explain why my arrangements are as they are.”
In her statement, Ms Rayner said,
“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.”
She stated,
“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.”
The housing secretary said,
“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.”
Ms Rayner stated,
“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.”
The deputy prime minister added,
“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.”
How did Angela Rayner’s trust impact her stamp duty liability?
Before purchasing the flat, Angela Rayner moved her stake in her constituency home into a trust. The trust, established in 2020, was set up to manage a payment to her son, who suffered lifelong disabilities after being born prematurely.
She purchased the flat in May 2025 and received legal advice. However, tax experts said the property could not be treated as her sole residence because of the existing trust.
Experts said that even after giving up her financial stake in the home following her divorce, Rayner would still be regarded as the owner if she or her children are beneficiaries under the trust with lifelong occupancy rights.
The flat is classified as an additional dwelling, meaning Ms Rayner should have paid the higher £70,000 rate. She is now working with HMRC to determine the exact amount due.
Despite her financial stake in the property, the Ashton home remains the family residence. Her children live there full-time, while she and her former husband alternate living there and caring for them.
Earlier this week, Downing Street said Ms Rayner was barred from sharing full details of her property ownership. She applied for transparency and was allowed to speak publicly.
What did Kemi Badenoch and Keir Starmer say about Rayner’s tax issue?
Tory leader Kemi Badenoch called on Prime Minister Keir Starmer to dismiss Angela Rayner after her admission of underpaying tax on her second home.
At Prime Minister’s Questions, Mrs Badenoch stated,
“I welcome the fact that the Deputy Prime Minister has referred herself to the ethics adviser. She has admitted she underpaid tax. So why is she still in office?”
Sir Keir Starmer praised Angela Rayner for seeking to lift the court order, saying he understood how difficult the decision was for her and her family.
He stated,
“But she did it to ensure that all information is in the public domain, she has now referred herself to the independent adviser, that is the right thing to do.”
The Labour leader said he was “very proud” to work alongside Ms Rayner and have her serve as his deputy.
Ms Badenoch responded,
“I’m not sure we would have heard all that sympathy [for Ms Rayner] if it was a Conservative Deputy Prime Minister who was being attacked.”
She added,
“I remember when the Prime Minister said that tax evasion is a criminal offence and should be treated as all other fraud. If he had a backbone, he would sack her.”
Tory leader added,
“I’m not sure we would have heard all that sympathy [for Ms Rayner] if it was a Conservative Deputy Prime Minister who was being attacked. I remember when the Prime Minister said that tax evasion is a criminal offence and should be treated as all other fraud. If he had a backbone, he would sack her.”
What did James Cleverly say about Rayner and Starmer?
The shadow housing secretaryJames Cleverly, said Sir Keir Starmer is “too weak to kick her out.”
He added,
“Her credibility is in tatters, she’s dodged questions all summer, her actions reek of hypocrisy. Starmer is too weak to kick her out.”
What Did Simon Danczuk and Miriam Cates Say About Rayner?
Simon Danczuk, a former Labour MP, has called for Angela Rayner to resign.
He said,
“Obviously, Angela Rayner must now resign. But it’s important to note those politicians consoling, supporting, defending her are as much part of the problem. They too bring British politics into disrepute. The public expect this wrong doing to be punished, not sympathised with.”
Former Tory MP Miriam Cates stated that Ms Rayner should not be
“hounded out of office. Angela Rayner has complex living arrangements as a result of her divorce and her son’s disability. She took professional financial advice, advice that a lawyer has now said was wrong. She is taking action to rectify the situation. Rayner should not be hounded out of office.”
What did Mel Stride say about Rayner’s stamp duty issue?
Sir Mel Stride, the shadow chancellor, stated,
“It’s utterly extraordinary that while working families and businesses are being hammered by Labour’s tax hikes, Angela Rayner has failed to pay the right amount of stamp duty.”
He added,
“The Deputy Prime Minister should not be setting the rules when she fails to keep them herself.”