Herne Bay Conveyancing Firm Says It Never Advised on £40,000 Underpayment as Ethics Investigation Expected Within Days
Angela Rayner’s lawyers have dramatically undermined the Deputy Prime Minister’s defence over her £40,000 stamp duty underpayment, declaring they never gave her tax advice and are being made “scapegoats” in the escalating scandal that threatens to end her political career.
Verrico & Associates, the Kent-based conveyancing firm that handled the purchase of Ms Rayner’s £800,000 seafront flat in Hove, delivered a devastating blow to the Housing Secretary’s credibility by flatly contradicting her claim that “legal advice that I received” led to the tax error.
In explosive comments to The Telegraph, Managing Director Joanna Verrico said: “We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for.”
The firm’s intervention comes as Sir Laurie Magnus, the Prime Minister’s independent adviser on ministerial standards, is expected to deliver his verdict as early as Friday on whether Ms Rayner breached the ministerial code – a finding that could force her resignation from government.
Lawyers Break Their Silence
In a series of damning revelations that directly challenge Ms Rayner’s version of events, Ms Verrico told The Telegraph that her firm “acted for Ms Rayner when she purchased the flat in Hove” but insisted they had done “everything correctly and in good faith.”
The conveyancing firm revealed they calculated the stamp duty using “HMRC’s own online calculator, based on the figures and the information provided by Ms Rayner,” which indicated a payment of £30,000 was required.
“We believe that we did everything correctly and in good faith,” Ms Verrico stated. “Everything was exactly as it should be.”
Most damagingly, she added: “We probably are being made scapegoats for all this. And I have got the arrows stuck in my back to show it.”
The firm emphasised: “We are not an inexperienced firm, but we’re not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these.”
A spokesman for the Council for Licensed Conveyancers confirmed the gravity of the situation, stating: “We have asked them for a full account of events. They are not licensed to provide tax advice. What they are licensed to do is to provide conveyancing advice, and they are regulated to the highest standards.”
Badenoch Demands Resignation
Conservative Party Leader Kemi Badenoch seized on the lawyers’ statement as proof of Ms Rayner’s dishonesty, declaring: “This is yet more damning evidence that Angela Rayner has not been honest with the British public.
“From the start, we’ve had nothing but excuses, deflections and lies,” Ms Badenoch said. “Enough is enough.”
The Tory leader demanded immediate action: “How many final straws can Ms Rayner have? She must resign or Keir Starmer must finally find the backbone to sack her.
At Prime Minister’s Questions on Wednesday, Ms Badenoch had already called for Ms Rayner’s dismissal, stating: “She has admitted she underpaid tax. So why is she still in office? If he had a backbone, he would sack her.”
The £40,000 Tax Error
The controversy centres on Ms Rayner’s purchase of an £800,000 seafront flat in Hove in May 2025. By removing her name from the deeds of her family home in Ashton-under-Lyne weeks before the purchase, she paid only the standard stamp duty rate of £30,000 rather than the higher rate of £70,000 applicable to second homes.
Ms Rayner admitted on Wednesday to underpaying stamp duty, claiming she had relied on “legal advice” that proved incorrect. She has referred herself to Sir Laurie Magnus and contacted HMRC to settle the underpaid tax.
The Deputy Prime Minister had initially defended her actions through a spokesperson who insisted she had paid the “relevant duty owing on the purchase of the Hove property in line with relevant requirements and entirely properly.
However, after days of mounting pressure, she admitted: “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.
Complex Trust Arrangements
The tax complications stem from a trust arrangement involving Ms Rayner’s family home in Greater Manchester. In 2020, a trust was established to manage an NHS compensation payment for her disabled son, who was born prematurely and has lifelong care needs.
During her divorce proceedings, Ms Rayner transferred her stake in the Ashton-under-Lyne property to this trust, reportedly receiving £162,500. She then used these funds as a deposit for the Hove flat, believing she owned no other property and therefore qualified for the standard stamp duty rate.
However, tax experts have confirmed that even after transferring her financial stake, Ms Rayner would still be deemed to own an interest in the property if she or her children are beneficiaries of the trust with lifelong occupancy rights.
Political Fallout Intensifies
The lawyers’ denial has intensified calls for Ms Rayner’s resignation from across the political spectrum. Shadow Housing Secretary James Cleverly said: “Her credibility is in tatters, she’s dodged questions all summer, her actions reek of hypocrisy. Starmer is too weak to kick her out.”
Reform UK deputy leader Richard Tice branded Ms Rayner “the biggest hypocrite in the land” for her criticism of opposing politicians whilst in opposition, adding: “She has to offer her resignation to the Prime Minister.
The controversy is particularly damaging given Ms Rayner’s role as Housing Secretary overseeing property taxation policies and her previous vocal criticism of others over tax affairs.
Vandalism at Hove Property
In a disturbing development, Ms Rayner’s Hove flat has been targeted by vandals who spray-painted messages including “Tax evader Rayner” and “Rayner tax avoidance” on wooden fencing around a nearby construction site. Further graffiti reading “Rayner Sold British Girls 4 Votes” was found on pavements near the property.
A spokesperson for the Deputy Prime Minister condemned the vandalism as “totally unjustifiable” and “beyond the pale,” stating: “Neither Angela nor her neighbours deserve to be subjected to harassment and intimidation. It will rightly be a matter for the police to take action as they deem appropriate.
Prime Minister Under Pressure
Sir Keir Starmer faces a critical test of his leadership as pressure mounts to sack his deputy. While he cannot remove Ms Rayner from her elected position as deputy party leader, he has the power to strip her of her government roles as Deputy Prime Minister and Housing Secretary.
The Prime Minister has publicly backed Ms Rayner, telling MPs he was “very proud to sit alongside” her and praising her for referring herself to the ethics adviser. However, he has repeatedly refused to confirm whether he would sack her if Sir Laurie Magnus finds she breached the ministerial code.
Speaking to the BBC on Thursday, Sir Keir said: “I do think in the end we need to establish the facts, which the independent advisor will do and come to a conclusion. I don’t think it’ll take long now for that bit of process to conclude and then, of course, it does fall to me.”
Investigation Timeline
Sir Laurie Magnus’s investigation is expected to conclude within days, with some sources suggesting his report could be published as early as Friday. The veteran ethics adviser has a reputation for swift investigations – his 2023 probe into former Tory chairman Nadhim Zahawi’s tax affairs took just six days and resulted in Zahawi’s dismissal for breaching the ministerial code.
HMRC is conducting a parallel investigation that could result in significant financial penalties. Tax expert Sean Randall told the BBC that if Ms Rayner’s actions are deemed “careless,” she could face a fine of around £12,000 on top of the £40,000 shortfall. If HMRC rules she acted deliberately, the penalty could double the amount owed, potentially exceeding £80,000.
Questions Remain
The lawyers’ statement raises serious questions about Ms Rayner’s account of events:
- Who actually advised her she could pay the lower stamp duty rate?
- Why did she blame “legal advice” when her conveyancers say they never gave tax advice?
- What information did she provide to her lawyers about her property arrangements?
- When did Sir Keir Starmer know about the underpayment?
As one Westminster observer noted: “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.
Ms Rayner’s political future now hangs in the balance as she awaits Sir Laurie Magnus’s verdict. With her own lawyers contradicting her defence and growing calls for her resignation, the Deputy Prime Minister faces the fight of her political life.
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Image Credit:
Angela Rayner chairs her first Cabinet meeting as Deputy Prime Minister (6 July 2024) — photo by Alamy, rights-managed editorial use.
