Deputy Prime Minister Angela Rayner has admitted she did not pay enough stamp duty on her second home and is now considering resignation.
The housing secretary has been under intense pressure over her tax affairs after media reports about her purchase of a seaside flat in the town of Hove.
In a statement published on Wednesday (3 September), Rayner said that she had bought the home through a trust set up for her son, but did not realise that the application of complex deeming provisions, which relate to the 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 said.
“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.”
The Guardian reports that Rayner is now battling for her political survival. Prime Minister Keir Starmer immediately threw his weight behind Rayner, but faced criticism after Downing Street refused to say when he had been told about her situation. Government sources suggested the ethics inquiry could be completed within days.
Rayner, currently serving as Housing Secretary, has been accused of hypocrisy over potential tax increases that may affect property owners. In the past, she has advocated for wealth taxes to support the UK’s stretched public finances, particularly aimed at individuals using companies to sidestep stamp duty.
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