Deputy Prime Minister and Housing Secretary Angela Rayner has come under fresh scrutiny after admitting that she underpaid Stamp Duty on her £800,000 seaside flat in Hove. In response, she has voluntarily referred herself to the parliamentary standards watchdog.
Rayner explained that when she bought the property, she acted on professional legal advice. At the time, she believed she was liable only for the standard rate of Stamp Duty. However, new advice has since revealed that her liability was higher than initially thought.
The difference could amount to as much as £40,000 in additional tax. She acknowledged the mistake and admitted that her original advisers did not fully account for the complex rules involved.
Media speculation around the purchase has intensified in recent days, fuelling questions about her financial affairs. The issue escalated further during Prime Minister’s Questions.
In the Commons, Conservative leader Kemi Badenoch seized on the controversy and openly called for Rayner to be sacked. She argued that her position was no longer tenable in light of the tax admission.
However, Prime Minister Keir Starmer quickly came to her defence. He told MPs that he was “very proud” to sit alongside Rayner and dismissed opposition demands for her removal.
In a detailed statement, Rayner outlined her understanding of events. She explained that her legal team had assured her at the time of purchase that she only needed to pay the standard rate of Stamp Duty.
But after a series of media allegations, she sought a second opinion from a senior tax barrister. Their review confirmed that, due to intricate deeming provisions linked to her son’s trust, she should have paid a higher rate.
Rayner admitted this advice had not been properly factored into her original tax calculations. She is now working closely with tax specialists and HMRC to settle the outstanding amount in full.
She stressed that family circumstances played a significant role in the situation. Divorce, disability, and the challenges of safeguarding her children’s long-term security had shaped her decisions, she explained.
Every choice, she added, was made with her children’s best interests in mind. Nonetheless, she expressed deep regret for the error and emphasised her commitment to full transparency.
Rayner confirmed that she has referred herself to the independent adviser on ministerial standards. She also pledged to provide full cooperation and access to all relevant documents as the matter is reviewed.
Her move to self-refer is seen as an attempt to draw a line under the controversy and maintain public trust at a time when questions over political integrity are dominating the headlines.
The timing of the revelation coincided with another major political announcement. On the same day, Chancellor Rachel Reeves confirmed that the Autumn Budget will be delivered on Wednesday 26th November.
The later-than-usual date has already sparked speculation about potential tax rises, particularly in relation to property transactions and rental income. Wealth managers such as Rathbones have reported a surge in enquiries from clients worried about buy-to-let investments, pensions, and estate planning.