Deputy Prime Minister Angela Rayner has admitted underpaying stamp duty on her £800,000 seaside flat in Hove, and has referred herself to the prime minister's ethics adviser. The admission comes after weeks of pressure over her property arrangements, with tax experts estimating the additional bill could be as much as £40,000.
Rayner said she incorrectly paid the lower rate of stamp duty on the flat, believing it was her only residence. However, due to a trust arrangement involving her former family home in Ashton-under-Lyne, Greater Manchester, the flat is considered an additional dwelling, meaning she should have paid the higher rate of around £70,000 rather than the £30,000 she paid.
In a personal statement to the Guardian, Rayner said she 'deeply regretted' the error and is now working with HM Revenue and Customs to determine the exact amount owed. She explained that the trust was set up in 2020 to manage a payment for her son, who has lifelong disabilities following a premature birth.
Prime Minister Keir Starmer defended Rayner, saying she had 'gone over and above' in setting out her personal circumstances and that referring herself was the 'right thing to do'. However, Conservative leader Kemi Badenoch called for her sacking, stating, 'If he had a backbone he would sack her.'
Rayner's position appears safe for now, pending the outcome of the ethics adviser's investigation into whether she breached the ministerial code. The controversy comes as Labour trails Reform UK in the polls and faces accusations of hypocrisy ahead of expected tax increases on property owners in the autumn budget.
