Angela Rayner Admits £40,000 Stamp Duty Underpayment; Faces Political Scrutiny

UK Deputy Prime Minister and Housing Secretary Angela Rayner has admitted to underpaying £40,000 in stamp duty on an £800,000 flat she purchased in Hove, East Sussex. The underpayment resulted from complex trust arrangements established for her disabled son.

In May 2025, Rayner acquired the seafront property, initially paying £30,000 in stamp duty based on legal advice that classified the flat as her primary residence. However, further consultation revealed that, due to a trust set up for her son, she was liable for the higher second-home rate, increasing her tax obligation to £70,000. This discrepancy led to an underpayment of £40,000.

Rayner has referred herself to the Prime Minister's independent adviser on ministerial standards and is collaborating with HM Revenue and Customs to resolve the matter. She expressed deep regret over the error, stating, "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."

The controversy centers on Rayner's property arrangements:

• Ashton-under-Lyne Property: Originally co-owned with her former husband, this property was transferred to a trust in January 2025 to provide stability for her teenage son with lifelong disabilities. Despite the transfer, Rayner continued to declare this property as her primary residence for council tax purposes.

• Hove Flat: Purchased in May 2025 for £800,000, this seafront flat was initially considered her primary residence for stamp duty purposes, leading to the standard rate payment. However, it was registered as a second home for council tax purposes with Brighton and Hove Council.

• London Residence: As Deputy Prime Minister, Rayner has access to a grace-and-favour apartment in Admiralty House, central London.

The situation has sparked significant political reactions. Conservative Party leader Kemi Badenoch called for Rayner's resignation, stating, "If Keir Starmer had a backbone, he'd sack Angela Rayner immediately. She has to go." In contrast, Prime Minister Keir Starmer defended Rayner, emphasizing her transparency and the challenges surrounding her family's legal matters. He stated, "I am very proud to sit alongside a deputy prime minister who is building 1.5m homes, who is bringing the biggest upgrade to workers' rights in a generation, and has come from a working-class background to become deputy prime minister of this country."

This incident has ignited a broader discussion on tax transparency and the ethical obligations of public officials. Critics argue that Rayner's actions contradict her previous advocacy for stricter property tax enforcement. Supporters contend that the complexity of tax laws can lead to genuine mistakes, even among those well-versed in policy. The case also highlights the challenges faced by families with disabled members in navigating legal and financial systems.

As investigations proceed, the case may set precedents for how similar situations are handled in the future, both legally and politically.