Deputy PM Angela Rayner admits to underpaying stamp duty on flat

Angela Rayner, the deputy prime minister and housing secretary, has confessed to underpaying stamp duty on a Hove flat purchase, saying her mistake was down to flawed tax guidance.

She has voluntarily referred herself to the Independent Adviser on Ministerial Standards to address the issue.

In an emotional interview on Sky News’ Electoral Dysfunction podcast with Beth Rigby, Ms Rayner revealed she was devastated by the oversight of relying on legal advice that she owed only the standard stamp duty rate.

Ms Rayner says she has discussed with her family the possibility of resigning to shield her son, who has lifelong disabilities, from public scrutiny.

‘I relied on advice’

She said: “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.”

The controversy stems from a Daily Telegraph report alleging Ms Rayner avoided £40,000 in stamp duty by removing her name from a Greater Manchester property’s deeds.

She clarified that her first home was transferred to a trust after her 2023 divorce to secure stability for her son, the trust’s sole beneficiary due to his disabilities.

Initially, legal advice indicated the standard stamp duty rate applied to her Hove purchase, but recent media scrutiny prompted her to seek further expert opinion, revealing additional tax liabilities due to the trust’s complex provisions.

Call to sack Rayner

Ms Rayner explained that confidentiality clauses were in place to protect her son, but she sought a court order yesterday to lift these in the interest of transparency.

She said: “The reason why those confidential clauses were in place was to protect my son, who, through no fault of his own, he’s vulnerable, he’s got this life-changing, lifelong conditions and I don’t want him or anything to do with his day-to-day life, to be subjected to that level of scrutiny.”

The issue surfaced just before the first Prime Minister’s Questions after the summer break.

That’s when Conservative leader Kemi Badenoch called for Ms Rayner’s sacking, saying: “If he had backbone, he would sack her.”

Building 1.5 million homes

However, Prime Minister Sir Keir Starmer defended his deputy, saying: “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.”

He went on to highlight her efforts to build 1.5 million homes and advance workers’ rights.

Ms Rayner said that post-divorce, she and her ex-husband arranged for their children to stay in their Ashton-under-Lyne family home, alternating their own presence.

The home, adapted for her son’s needs, was sold to a trust established in 2020 following a distressing incident that left him disabled.

The trust ensures her son’s security, Ms Rayner said, adding that she owned no other property when purchasing the Hove flat.

She is now working with HMRC to resolve the outstanding amount.

Ms Rayner said: “I deeply regret the error that has been made.

“I am committed to resolving this matter fully and providing the transparency that public service demands.”

Angela Rayner’s timeline of events

• 2020: Following an incident that resulted in lifelong disabilities for Rayner’s young son, a trust was established for him. The family home was adapted to accommodate his needs, and Ms Rayner and her ex-husband agreed to transfer their ownership interest in the property to the trust, with their son as the sole beneficiary
• 2023: A portion of the ownership interest in the family home was transferred to the trust. After their divorce, Ms Rayner and her ex-husband arranged a ‘nesting’ setup, allowing their children to remain in the Ashton-under-Lyne family home while the parents took turns living there. Rayner considers this property her family home, as it is where her children reside, attend school and now college
• January 2025: Ms Rayner transferred the remaining ownership interest in the Ashton property to her son’s trust, ensuring his long-term security in the home
• May 2025: Using the proceeds from the sale of her share in the Ashton property, Ms Rayner purchased a home in Hove. She received legal advice indicating she was required to pay the standard rate of stamp duty on the Hove property
• Since May: Following recent public attention, Ms Rayner sought more advice and discovered she owed additional stamp duty. She notes that a court order previously restricted her from disclosing full details of her financial arrangements, but this order has been lifted. Ms Rayner is now working with lawyers and HMRC to settle any outstanding payments.

Watch Angela Rayner’s Sky News interview: