Angela Rayner has stated that she has been cleared by HM Revenue & Customs (HMRC) of deliberately avoiding stamp duty tax and will not face a financial penalty. This follows her resignation as Deputy Prime Minister and Housing Secretary after admitting to underpaying stamp duty on a flat in Hove.

HMRC clears Angela Rayner of deliberate tax avoidance

Angela Rayner has publicly declared that HMRC has exonerated her from accusations of intentionally evading stamp duty tax. The controversy arose over her purchase of an £800,000 flat in Hove, East Sussex, where she was alleged to have underpaid £40,000 in stamp duty by declaring the property as her primary residence.

According to reports, Ms Rayner removed her name from the deeds of her Greater Manchester home shortly before buying the Hove flat. This action allowed her to pay the standard stamp duty rate of £30,000 instead of the £70,000 that would have applied had the flat been classified as a second home.

Ms Rayner has since paid the outstanding £40,000 and insists she acted in good faith based on expert advice. She said, “I set out to pay the correct amount of tax. I took reasonable care and acted in good faith, based on the expert advice I received, and HMRC has accepted this.”

She added that she had no personal financial interest in a trust managing her son’s financial award at the time of purchase and believed she was compliant with tax rules. “I have always sought to act with integrity, and I believe politicians should be held to high standards – that is why I resigned from government and cooperated fully with HMRC,” Ms Rayner stated.

HMRC response and confidentiality

HMRC has declined to comment directly on Ms Rayner’s claims. A spokesperson told The Telegraph that while they could not deny she had been cleared of deliberate wrongdoing, confidentiality laws prevent them from providing further details.

In an interview with The Guardian, Ms Rayner acknowledged that some might still feel uneasy about her paying the standard stamp duty rate when HMRC later determined she should have paid the higher rate. She explained, “This is a very complex area of tax. It’s ambiguous and I did get advice at the time. Therefore, I felt like I’d done everything I could to ensure that I complied.”

Political implications

The stamp duty controversy and subsequent resignation have not ended Ms Rayner’s political prospects. She is currently viewed as a potential future Labour leadership candidate amid growing pressure on Keir Starmer following recent local election setbacks and unrest within the party.

What this means for landlords

This case highlights the complexities surrounding stamp duty rules, especially regarding primary residence status and second home classifications. Landlords and property investors should be aware that HMRC scrutinises declarations carefully and that expert advice is crucial when navigating these tax obligations.

It also underscores the importance of transparency and cooperation with tax authorities to resolve disputes and avoid penalties. Even high-profile individuals are subject to rigorous investigation, emphasising that compliance and accurate tax payment remain paramount in property transactions.

Source: Based on reporting from Property118

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