The deputy prime minister, who has been Sir Keir Starmer‘s right-hand girl since 2024, confronted an investigation this week from an ethics probe that seemed into whether or not she broke ministerial tax guidelines, with an ethics advisor revealing she didn’t meet the “highest doable requirements of correct conduct”.
It comes after Rayner admitted that she didn’t pay sufficient tax when buying a flat in East Sussex, with the politician reportedly saving round £40,000 in stamp duty.
The MP from Larger Manchester mentioned it was a “mistake” which she blamed on improper authorized recommendation on the time, but it surely’s prompted calls from some MPs for her to resign.
“I assumed I would carried out every part correctly, and I relied on the recommendation that I acquired and I am devastated as a result of I’ve at all times upheld the foundations and at all times have carried out,” she informed Sky Information. “And at all times felt proud to try this.”
Her departure will mark a substantial blow for Sir Keir Starmer, who has stood by the deputy PM all through the investigation.
So what precisely has Angela Rayner carried out?
Angela Rayner’s stamp obligation incident defined
The investigation boils all the way down to the quantity of stamp obligation that Angela Rayner paid when buying a seaside flat in Hove, East Sussex.
When individuals purchase a further property on high of an current residence, they’re often required to pay much more SDLT on high of normal charges.
That is what has seemingly tripped Rayner up.
Earlier this 12 months, the deputy PM paid round £30,000 in stamp obligation after buying an residence in East Sussex for £800,000.
The difficulty is that this stamp obligation price would solely apply if this can be a individual’s sole property — which some argue wasn’t the case.
That’s as a result of Rayner additionally had ties to her outdated constituency residence in Ashton-Below-Lyne, which was registered as her main residence for council tax causes.
Following Rayner’s divorce in 2023, the deputy PM and her former husband had agreed on a “nesting” situation the place their kids would stay within the household residence in Ashton whereas the dad and mom moved out and in.
The home was positioned in a belief, and Rayner says she offered her stake earlier this 12 months, permitting her to purchase her Hove residence.
As a result of her title wasn’t on the deed of the Manchester residence, Rayner says she was suggested that she paid the correct quantity of stamp obligation on her Hove residence as if it had been her solely dwelling.
Whereas the stamp obligation course of is slightly complicated, it’s thought that she ought to have really paid someplace round £70,000 in tax.
Rayner has admitted that she underpaid on stamp obligation tax after the Hove property was recognized as her main residence.
Though the result of the unbiased investigation into the controversy is but to be made public, Rayner has confirmed that she is stepping down.
Ms Rayner maintained this week that she believed she was responsible for the usual stamp obligation price following authorized recommendation, however was later knowledgeable that the complicated provisions concerning the belief “offers rise to extra stamp obligation liabilities”.
She admitted to the “mistake” and referred herself to the Impartial Adviser on Ministerial Requirements, who’s now figuring out whether or not she broke ministerial guidelines.
Nonetheless, the conveyancing agency that had been concerned with Rayner has additionally mentioned its attorneys “by no means” gave Ms Rayner tax recommendation, and urged they had been being become “scapegoats”. Its managing director, Joanna Verrico, mentioned: “We’re not certified to offer recommendation on belief and tax issues and we advise purchasers to hunt skilled recommendation on these.”
Starmer mentioned the unbiased investigation will decide the details of the matter, however he’ll then have to determine what occurs subsequent. He mentioned: “I utterly settle for that – to make the choice primarily based on what I see in that report”.
Opposition chief Kemi Badenoch additionally known as on Starmer to sack Ms Rayner.
