Angela Rayner stamp duty ‘scandal’ defined: What | U.Okay.Finance News
Angela Rayner has lastly admitted she didn’t pay enough stamp duty on her new seaside home. The Deputy Prime Minister mentioned she had obtained inaccurate tax advice on her latest buy of an £800,000 flat in Hove, and has since referred herself to the impartial adviser on ministerial requirements.But how did Ms Rayner make this error, and what may it imply for her political future?What is stamp duty?Stamp Duty Land Tax (SDLT) is a property tax paid when shopping for a home in England and Northern Ireland.Rates differ relying on the price of the property and whether or not it’s a first or further home. As of 2025, normal charges for major residences begin at 0% for properties up to £125,000, then rise incrementally to 2% on the portion from £125,000 to £250,000, 5% on the portion from £250,001–£925,000, 10% from £925,001–£1.5 million, and 12% above that.Buyers of further properties, reminiscent of second houses or buy-to-lets, pay a 3% surcharge on prime of these charges, which means the efficient value will be considerably greater.Why did Angela Rayner pay too little stamp duty?When Ms Rayner purchased the seaside flat in May, she paid round £30,000 in normal stamp duty. But, as a result of she already successfully owned one other home, she ought to have paid the upper second-home charge — nearer to £70,000.Property entrepreneur Harry Fenner instructed Express.co.uk: “When buying an additional property – be it a second home or a buy-to-let – you’re hit with a 3% stamp duty surcharge on top of the standard rates. Rayner reportedly declared the Hove property as her main residence, thereby avoiding the higher second home duty – despite still owning a house.”Earlier this 12 months, Ms Rayner transferred her share of her Ashton-under-Lyne household home into a trust set up in 2020 for her disabled son. Having eliminated her identify from the deeds, she says she was suggested she may class the Hove flat as her solely dwelling.However, tax consultants mentioned the Hove property couldn’t be handled as her solely residence as a result of of the character of the trust. If she or her youngsters may nonetheless benefit from dwelling within the Ashton home, it seemingly nonetheless counted as her fundamental residence for tax functions.And by virtually all measures, Ms Rayner’s fundamental base stays Ashton-under-Lyne. It is the place her youngsters stay, the place she pays council tax, and the deal with used for her official paperwork and electoral roll.She mentioned in her assertion: “It remains my family home, as it has been for over a decade. It contains the majority of my possessions and it is where I am registered for most official and financial purposes ranging from credit cards to the dentist to the electoral roll. But most importantly, it is where my children live and have gone to school and now college, and where I regularly live while caring for them.”Explaining the transfer she made, Ms Rayner continued: “After I sold my stake to the trust, I bought a property in Hove in May 2025. Like many people, I used the lump sum from selling my stake in my Ashton home, which was the only property I owned and where my savings were, for the deposit on my new one.“I obtained a mortgage to finance the rest. 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 “allegations in the press”, Ms Rayner mentioned she sought additional advice from a main tax counsel to review that place, who later knowledgeable her that she had not been tax compliant.She mentioned: “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.”Mr Fenner mentioned: “This isn’t a case of dodging small print. It’s about exploiting a loophole she knew, or should have known, existed – all while preaching about fairness and integrity. It reeks of double standards.”Ms Rayner has referred herself to the impartial adviser on ministerial requirements and admitted she even thought-about resigning.Sir Keir Starmer has since backed the Deputy Prime Minister, saying he was “very proud to sit alongside” her at Wednesday’s Prime Minister’s Questions. He added that her transfer to refer herself to the impartial ethics adviser was “the right thing to do”.In the Commons, Sir Keir mentioned: “She has explained her personal circumstances in detail. She’s gone over and above in setting out the details, including Mr Speaker, yesterday afternoon, asking a court to lift a confidentiality order in relation to her own son.”I do know from talking at size to the Deputy Prime Minister simply how tough that call was for her. But she did it to make sure that all data is within the public area. She has now referred herself to the impartial adviser. That is the proper factor to do.”However, Mr Fenner warned: “This scandal isn’t going away.”He continued: “For the average purchaser, failing to pay the proper stamp duty would lead to swift HMRC penalties. Will Rayner face the identical scrutiny? More broadly, it raises severe questions on Labour’s credibility on housing coverage.”If their Deputy Leader can’t or won’t follow the rules, why should voters trust them to fix Britain’s broken property market?”
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