Deputy Prime Minister Angela Rayner has admitted she underpaid tax on her £800,000 Hove property, conceding she made a “mistake” but insisting she acted in good faith on legal advice.
Speaking to Sky News’ political editor Beth Rigby, Rayner confirmed reports that she failed to pay the full amount of stamp duty on her second home, a liability estimated at around £40,000. She said she has now referred herself both to HMRC and to the independent adviser on the ministerial code.
Rayner explained that the error stemmed from a complex trust arrangement established in 2020 to provide for her son, who has lifelong disabilities. The trust was set up by a court as part of an award following an injury, with a legal trustee managing the property that had been adapted for her son’s needs.
When Rayner divorced in 2023, she said the trust assumed ownership of the family home so both parents could continue to use it while caring for their children. She then withdrew her remaining equity from the property to buy the Hove home with a mortgage.
She told Rigby she had relied on advice that she was only liable for standard stamp duty because she technically owned one property. But subsequent expert counsel concluded she should have paid the additional rate due to the nature of the trust.
“As soon as I knew that was the case, I alerted HMRC and referred myself for independent scrutiny,” she said.
“Not tax dodging”
Rayner rejected accusations she had deliberately sought to avoid tax. “The trust was set up by a court to provide for my son after an injury,” she said. “I wasn’t trying to dodge tax.”
She said the confidential nature of her divorce and family arrangements, protected by a court order until recently lifted, had prevented her from giving a full account earlier.
The Labour deputy leader admitted she briefly considered stepping down, describing the episode as “devastating”. “I thought I’d done everything properly and I relied on the advice I received,” she said. “I’ve always tried to uphold the rules.”
Pressed on whether her position was sustainable, particularly given her housing brief, Rayner said: “People make mistakes, but I conducted myself in trying to do the right thing, and I hope people can see that.”
Rayner’s case will now be examined by the independent adviser on ministerial standards. HMRC has also been contacted to ensure the additional tax owed is paid.
Her political future will hinge on whether voters and colleagues accept her explanation that the mistake was one of legal misinterpretation rather than intent — and whether she can weather the fallout as Reeves prepares her November budget and Labour faces mounting pressure on economic credibility.
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
