UK deputy prime minister Angela Rayner has admitted she underpaid stamp duty on the purchase of her £800,000 seaside apartment in Hove, East Sussex, after days of rejecting reports about irregularities in the transaction.
Rayner, who also serves as housing secretary, acknowledged in a statement on Wednesday that she paid £30,000 in duty at the time of purchase rather than the £70,000 higher rate which would have applied if the flat was deemed a second property.
The Labour MP said she had “acted in good faith” on advice from lawyers but accepted she had made an error.
To ensure transparency, Rayner referred herself to Sir Laurie Magnus, the prime minister’s independent adviser on ministerial interests, who will now open a formal review.
Starmer offers support, but questions remain
Prime Minister Sir Keir Starmer defended his deputy, saying he was “proud” to work alongside her and praised the decision to self‑refer.
“She has explained her personal circumstances in detail, and I know how difficult that decision was for her and her family,” he told reporters.
However, Downing Street refused to confirm precisely when Rayner or the prime minister himself became aware that the wrong rate of tax had been paid, a lack of clarity that has fuelled speculation of a cover‑up.
Asked whether Starmer would thank the media for highlighting the issue, Number 10 declined comment.
The controversy comes as the government prepares for Chancellor Rachel Reeves’s Autumn Budget on 26 November, where further tax rises — potentially including on property — are expected.
Conservative attack and accusations of hypocrisy
Conservative leader Kemi Badenoch accused Rayner of double standards.
“She has admitted she underpaid taxes, so why is she still in office?” Badenoch said, pointing to Rayner’s previous calls for harsher penalties on property investors who use loopholes to avoid stamp duty.
Rayner’s critics have seized on the row to depict her as hypocritical, noting that she has long championed higher taxes on second homeowners.
Allies insist her case is more complex, tied to her divorce proceedings and family arrangements.
Complex family arrangements revealed
In her statement, Rayner disclosed that her Ashton‑under‑Lyne constituency home in Greater Manchester had been placed in a trust for her disabled son following her divorce.
Her children live there full‑time in what she described as a “nesting arrangement” with her ex‑husband.
When she purchased the Hove apartment in May, legal advice suggested only the standard rate applied because she no longer directly owned the Ashton property.
Only after reviewing the matter with senior tax counsel did she learn that “complex deeming provisions” meant she should have paid the second‑home surcharge.
She said a recent confidentiality order linked to her divorce had prevented her from disclosing the details more fully until now.
I acknowledge that I did not pay the appropriate stamp duty at the time of the purchase. I deeply regret the error and am committed to resolving this matter fully.
Political stakes for Labour
The fallout places both Rayner’s career and Labour’s image under intense scrutiny.
While Starmer cannot remove her as deputy party leader — a post she won by internal election in 2020 — he holds the authority to strip her of government roles such as deputy prime minister and housing secretary.
For now, Starmer’s public backing and Badenoch’s failure to press the issue effectively at Prime Minister’s Questions offer Rayner short‑term breathing space. One senior Tory admitted the opposition’s line of attack had been “painful to watch”.
But the final judgment will depend on Magnus’s investigation, particularly whether Rayner’s team misled the media during the days of firm denials.
A timeline establishing who knew what and when could prove decisive.
Broader implications
Beyond Rayner’s personal fate, the case strikes at Labour’s broader narrative.
The party has emphasised fairness in taxation and the need for stronger public finances to support investment in services.
A senior Labour strategist privately admitted the timing was “awkward in the extreme” as the government prepares to argue the case for higher levies across the board.
Analysts said the saga could test Starmer’s grip on his party. “If Labour is seen to excuse one of its most senior figures while raising taxes on everyone else, that exposes them to charges of hypocrisy,” said one Westminster observer.
For now, Rayner has vowed to cooperate fully with the investigation. “Transparency and accountability are core to public service,” she said.
“I will make sure this matter is resolved appropriately.”
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