Angela Rayner has admitted she underpaid stamp duty on her £800,000 seaside flat in Hove and referred herself to the Prime Minister’s ethics adviser, as Sir Keir Starmer vowed to stand by his embattled deputy during a fiery exchange at Prime Minister’s Questions.
The Deputy Prime Minister confirmed on Wednesday that she will have to pay additional property tax after receiving incorrect legal advice, with experts suggesting the bill could run to as much as £40,000.
Ms Rayner revealed she had spoken to her family about quitting over the scandal, describing it as “quite a distressing time for my family” and saying she was “devastated” by the error.
Court Order Lifted to Reveal Son’s Disability
The Housing Secretary applied to a court on Tuesday to lift a confidentiality order so she could explain her “complex living arrangement” following her divorce and the needs of her disabled teenage son.
In an emotional statement, Ms Rayner explained that a court-instructed trust was established in 2020 following “a deeply personal and distressing incident” involving her son as a premature baby. He was left with life-long disabilities, and the trust was established to manage the award on his behalf – a standard practice in circumstances like ours.
The Deputy PM’s teenage son is the sole beneficiary of the trust, which was set up to ensure he continued to have stability in the family home, which had been adapted for his needs.
The £40,000 Tax Error
Ms Rayner purchased the Hove property in May 2025 after selling her remaining 25 per cent stake in her former family home in Ashton-under-Lyne to her son’s trust in January 2025. She believed at the time she was liable only for standard stamp duty as she owned no other property.
However, after media reports claimed she had avoided £40,000 in stamp duty, Ms Rayner sought advice from “leading tax counsel” who discovered the initial legal advice was wrong.
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,” Ms Rayner said in her statement.
Accusations ‘Accurate But Different’
When pressed by Sky News’s Beth Rigby about whether accusations she didn’t pay stamp duty were accurate, Ms Rayner admitted: “They are accurate, but in a different sense.
The Deputy Prime Minister explained: “I think the accusations were that I set up a trust and I flipped it to try and avoid paying it. But actually the complex area of the trust which the advice that I relied upon didn’t pick that up.”
She firmly rejected suggestions she was trying to dodge tax, stating: “No, the trust was set up by a court to provide for my son after an injury.”
Prime Minister’s Strong Backing
Sir Keir Starmer mounted a robust defence of his deputy at Prime Minister’s Questions, telling MPs he was “very proud to sit alongside” Ms Rayner.
The Prime Minister said: “In relation to the Deputy Prime Minister she has explained her personal circumstances in detail, she’s gone over and above in setting out the details including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son.
“I know from speaking at length to the Deputy Prime Minister just how difficult that decision was for her and her family. But she did it to ensure that all information is in the public domain, she has now referred herself to the independent adviser, that is the right thing to do.”
Sir Keir praised Ms Rayner as a Deputy Prime Minister “who is building 1.5 million homes, who has brought in the biggest upgrade to workers’ rights in a generation and who’s come from a working-class background to be Deputy Prime Minister of this country.
Family Home Remains in Constituency
Ms Rayner’s statement revealed the complexity of her living arrangements. The sale of the property in Ashton-under-Lyne to the trust has not altered my family life. It remains my family home, as it has been for over a decade, she explained.
“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.”
Opposition Attacks
Shadow Chancellor Mel Stride said it was “utterly extraordinary that while working families and businesses are being hammered by Labour’s tax hikes, Angela Rayner has failed to pay the right amount of stamp duty.
He added: “The deputy prime minister should not be setting the rules when she fails to keep them herself.
Conservative Party Chairman Kevin Hollinrake had earlier accused Ms Rayner of wanting “higher taxes on family homes, but doesn’t want to pay them herself.
Considered Resigning
Ms Rayner revealed she had discussed resignation with her ex-husband, who she praised as “an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”
Asked directly whether she had thought about quitting, the Deputy Prime Minister said: “I spoke to my family about it… the number one priority for me and my ex-husband has always been to support our children and do the best thing for our children.”
She told Sky’s Electoral Dysfunction podcast: “I’ve been in shock, really, because I thought I’d done everything properly, and I relied on the advice that I received, and I’m devastated because I’ve always upheld the rules and always have felt proud to do that.”
Complex Property Arrangements
The controversy erupted after The Daily Telegraph reported Ms Rayner had saved £40,000 in stamp duty by removing her name from the deeds of her Greater Manchester property weeks before buying the Hove flat.
By declaring the seaside property as her main home for stamp duty purposes, she paid £30,000 instead of the £70,000 that would have applied to a second home purchase.
However, Ms Rayner has told Tameside Council her constituency home remains her primary residence and informed Brighton and Hove Council that her Hove apartment is a second home for council tax purposes.
‘Deeply Regrets’ Error
In her statement, Ms Rayner said she “deeply regrets” her error and was “committed to resolving this matter fully and providing the transparency that public service demands.”
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. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due,” she said.
Political Timing
The revelation comes at a sensitive time for the government as it prepares to hike taxes in the upcoming Budget to fill what Labour describes as a multi-billion pound black hole in public finances.
Chancellor Rachel Reeves is expected to target wealth through increased taxes on second homes, making Ms Rayner’s stamp duty underpayment particularly politically damaging.
Family Complexity
Ms Rayner appealed for understanding, saying: “The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce and the complexities of ensuring your children’s long-term security.”
She added: “Most people make mistakes. I conducted myself in trying to do the right thing, and I hope that people can see that.”
The Deputy Prime Minister confirmed she has contacted HMRC to arrange payment of the additional tax owed and will “fully comply” with their requirements.
As the ethics investigation begins, Ms Rayner faces further scrutiny while continuing her duties overseeing the government’s ambitious housing programme, including plans to build 1.5 million new homes.
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