Angela Rayner Refers Herself To Ethics Adviser After Admitting Stamp Duty Underpayment
3 min read
Deputy Prime Minister Angela Rayner has referred herself to the independent ethics adviser after admitting to not paying enough stamp duty on her seaside flat.
On Wednesday, Rayner admitted that she hadn't paid enough stamp duty on her £800,000 property in Hove, Sussex.
In interviews with The Guardian and Sky News, the Deputy Prime Minister stated that she would pay the tax she owed and had referred herself to Prime Minister Keir Starmer's independent adviser on ministerial standards, Sir Laurie Magnus, for investigation.
Rayner told Sky's Electoral Dysfunction podcast she was in "shock" and believed that she had acted properly in relation to the Sussex property.
It is estimated that the underpayment amounts to around £40,000.
On Monday, Downing Street stated that Rayner had been unable to disclose all details about the case due to a court order.
The Deputy PM asked the court for permission to discuss the details following press coverage of the case, according to The Guardian.
Rayner had been under pressure to explain why the property in Hove had not been classified as a second home despite her already having a property in Greater Manchester, where her constituency is located.
Second homes attract higher levels of stamp duty than primary residences.
Rayner said the legal advice she initially received about the property was inaccurate due to confusion over a trust set up for her disabled son.
In a statement to the newspaper, she 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.
“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.”
At Prime Minister's Questions, Starmer defended Rayner and said he was proud to sit next to someone who had risen to become deputy prime minister from a working-class background.
"[Rayner] has explained her personal circumstances in detail. She has gone over and above in setting out the details, including Mr Speaker, yesterday afternoon, asking the court to lift a confidentiality order in relation to her own son.
"I know from speaking at length to the Deputy Prime Minister, just how difficult that decision was for her and her family. But she did it. She did it to ensure that all information is in the public domain."
