Angela Rayner is contesting claims she underpaid stamp duty on a £800,000 flat purchase as discussions with HM Revenue & Customs continue.
The former deputy prime minister (main picture, inset) resigned last year after independent legal advice concluded she had likely paid the incorrect amount of stamp duty on the Hove property.
The issue centres on her decision to declare the flat as her primary residence, resulting in a lower tax bill of around £30,000 rather than the estimated £70,000 due on a second home.
At the time, advice commissioned by the Labour Party found she should have paid the higher rate, due to her retained interest in a family home in Greater Manchester held in trust for her son. Rayner subsequently referred herself to HM Revenue & Customs and acknowledged it was “likely” she had “inadvertently” underpaid.
NEW LEGAL ADVICE
However The Times reported Friday that new legal advice has now been submitted to HMRC, arguing that the higher rate may not apply, citing complexities around the trust arrangement.
Her team confirmed discussions with HMRC are ongoing, with Rayner expected to accept the final ruling and settle any outstanding tax or penalties if required.
The case highlights the complexities of stamp duty rules, particularly where property ownership intersects with trusts and beneficial interests – an area that continues to create uncertainty for buyers and advisers.
Tax experts suggest the outcome will hinge on how HMRC interprets Rayner’s retained interest in the family home, and whether this constituted ownership at the time of the Hove purchase.
The investigation is ongoing, with a decision expected in due course.
Property Soup reported last month how Angela Rayner is set to take centre stage at this year’s Propertymark One conference in a move that places one of the UK’s most influential political figures directly in front of property professionals.
