Surprise ! Surprise !
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UK deputy PM admits £40K stamp duty error on flat
Deputy Prime Minister Angela Rayner admitted Tuesday she underpaid up to £40,000 in stamp duty on her £800,000 Hove flat and referred herself to the ministerial standards adviser, ending weeks of denials and mounting political pressure.
In a tearful interview with Sky News, Rayner acknowledged that accusations she failed to pay the correct stamp duty rate on her seafront property were "accurate," marking a dramatic reversal from her previous position. The admission followed the lifting of a court order that had prevented her from discussing complex financial arrangements involving her disabled son.
Complex Trust Arrangements Cited
Rayner explained that the confusion arose from a trust established by a court in 2020 following an award for her son, who sustained lifelong disabilities from an injury. When she divorced in 2023, the family home was transferred to this trust to provide stability for her children, with Rayner and her ex-husband maintaining shared access.
"The trust was set up by a court to provide for my son after an injury," Rayner said, rejecting suggestions she deliberately structured the arrangement to avoid tax. She paid £30,000 in stamp duty rather than the £70,000 that would have applied if the Hove property was classified as a second home.
Initial legal advice suggested she was liable only for the standard rate, but subsequent expert counsel determined the trust arrangement meant additional stamp duty was owed. "The leading tax counsel who has subsequently looked at it has said that actually, because of that, it did remain my sole property," she explained.
Political Fallout and Resignation Consideration
The Deputy Prime Minister revealed she considered resigning over the matter, telling Sky News she had been "in shock" and was "devastated" by the error. "I spoke to my family about it. I spoke to my ex-husband," she said when asked if she thought about "packing it in".Prime Minister Keir Starmer had previously backed Rayner, calling her a "great British success story" and criticizing briefings against her. However, Conservative Party chairman Kevin Hollinrake has demanded a full investigation, labeling her actions "hypocritical tax avoidance" for a minister who advocates higher taxes on second homes.Rayner has contacted HMRC to arrange payment of the outstanding tax and referred herself to the Independent Adviser on Ministerial Standards for investigation. As housing secretary, she oversees policies including council tax and stamp duty rates, adding to the political sensitivity of the matter.
Ref:
- Angela Rayner admits she should have paid more stamp duty on flat purchase and considered resigning (Sky News)
- Angela Rayner admits she should have paid more stamp duty on flat purchase and considered resigning (Sky News Video)
- Tearful Angela Rayner says she acted with 'integrity' over stamp duty row (Sky News YouTube)
- Angela Rayner admits error over tax affairs (YouTube)
- Rayner refers herself to independent adviser on ministerial standards (Civil Service World)
- Rayner admits she didn't pay enough stamp duty on second home (The Spectator)
- Angela Rayner Refers Herself To Ethics Adviser After Admitting Stamp Duty Underpayment (PoliticsHome)
- What is stamp duty and what has Angela Rayner said about it? (Yahoo News UK)
- Tories call for investigation into Rayner's tax affairs (BBC)
- In full: Angela Rayner admits she didn't pay enough tax on £800k home (The Telegraph)
- Conservatives call on PM to sack Rayner over stamp duty admission (Sky News YouTube)