Deputy Prime Minister Angela Rayner could be forced to pay tens of thousands of pounds more in stamp duty on her £800,000 flat in Hove if officials rule she wrongly claimed the lower rate, tax experts have warned. Questions have been mounting over Rayner’s property arrangements, with critics accusing her of minimising tax liabilities while advocating higher wealth taxes. HM Revenue & Customs (HMRC) has until next spring to decide whether her purchase was correctly classified.
Complex Property Arrangements Under Scrutiny
Rayner has long listed her constituency home in Ashton-under-Lyne, Greater Manchester, as her main residence for council tax purposes, allowing her to avoid a £2,000 annual bill on a grace-and-favour flat in London. Earlier this year, she placed the Ashton house into a trust before purchasing the Hove property, which she declared as her sole dwelling.
However, specialists say HMRC could decide she still retained an interest in the Ashton home if she or her children were beneficiaries of the trust. That would mean the Hove flat should have been treated as an additional property, attracting the higher stamp duty rate of £70,000 instead of the £30,000 she paid.
Experts Weigh In
Sean Randall, a stamp duty adviser, said: “Rayner disposed of the Ashton house into a trust before midnight of the day of completion. But she would be regarded as still owning it if she or her children are a beneficiary under the trust and entitled to occupy the dwelling for life. The key question is whether she or her children are so entitled.”
He added that HMRC could open an inquiry within eight months of completion. “HMRC has the opportunity, but not the obligation, to check later,” he said.
Henry Pryor, a property agent, also noted that the test for stamp duty is not limited to ownership. “The test for stamp duty is not whether you own another property, but whether you have an interest in another property, which is your main one,” he explained.
Political Fallout and Defence
Rayner’s office has not commented on the fresh warnings, though her allies insist she has followed the rules and is not under investigation by the government’s ethics adviser. Her property affairs have nonetheless drawn fire from political opponents, who accuse her of hypocrisy for reducing her own tax exposure while lobbying for wealth taxes.
Earlier this year, the Telegraph revealed that Rayner had written to Chancellor Rachel Reeves urging reforms to close loopholes used to avoid stamp duty — including the practice of buying homes through companies.
Starmer Backs His Deputy
Prime Minister Keir Starmer has stood firmly by his deputy. “Angela is an incredible person [and] deputy prime minister,” he said this week.
Downing Street has confirmed that Rayner is currently restricted from releasing all details of her property ownership due to a court order, though she is said to be “urgently working” to clarify the legal position. That disclosure could include the terms of the trust holding her Ashton home, a detail likely to prove central to whether HMRC pursues an additional stamp duty charge.
