Angela Rayner’s explanation for stamp duty error not the end of the matter
Angela Rayner’s explanation for her failure to pay the correct stamp duty on her home in Hove rests on a claim that she was wrongly advised about her tax exposure when buying the property earlier this year.
Following media reports that she had avoided tax of up to £40,000 she took fresh advice and now acknowledges she should have paid the second-home stamp duty surcharge, taking the tax owed on the £800,000 property from £30,000 to £70,000.
She says the confusion lies in the complexity of her domestic affairs, arising from arrangements made to care for her son, who has “lifelong disabilities” and special educational needs.
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In 2020 an award was made to Ms Rayner‘s son following what she called “a deeply personal and distressing incident” as a premature baby, and a trust was established to manage the award and his interests.
She is not explicit in her statement but it is presumed the “award” was financial, potentially made in compensation.
Ms Rayner says she and her then husband Mark Rayner committed to transfer their interest in the family home in Ashton-under-Lyne to the trust, of which their son is the sole beneficiary.
In 2023, the couple divorced but agreed that their children would remain in the family home while they routinely moved in and out to care for them, an arrangement known as nesting. At that time, Ms Rayner said some of their interest in the family home passed to her son’s trust
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Rayner admits she didn’t pay enough tax
In January 2025, the deputy prime minister says she sold her remaining interest in the home to her son’s trust and used it as a deposit on a flat in Hove, valued at around £800,000. She took out a mortgage to cover the remainder of the purchase.
At the time, she says she took tax advice and was told that, given she no longer owned any other property, she was only required to pay standard stamp duty, which would have totalled around £30,000.
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Following media reporting last month she says she sought fresh advice from “senior tax counsel” and was told she was in fact liable to pay the second-home stamp duty surcharge, an additional 5% flat charge, because of what she calls “complex deeming provisions” relating to her son’s trust.
Deeming provisions are a legal device that create a “legal fiction” to simplify complex issues, often in relation to tax.
Ms Rayner gives no details of the provisions, but one explanation is that if she has rights under the terms of the trust to live in the family home for life, it should be treated as her main residence for the purposes of stamp duty.
HMRC’s guidance on the higher rate of stamp duty states parents of under-18s are treated as the owners of residential property “even if the property is held through trust and they are not the trustees”.
She says that the Ashton-under-Lyne property remains her family home, where she is registered for official, financial and medical purposes.
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Rayner’s tax affairs statement in full
In December 2024, Ms Rayner was granted the use of a grace-and-favour flat in Admiralty House in Whitehall in her role as deputy prime minister, and gave up a rented property in London to move in. She had classified this as her second home for council tax purposes, which as a consequence is paid for by the government.
The advice that counts now is that which Sir Laurie Magnus gives to the prime minister. The government’s independent ethics adviser may want to know if Ms Rayner provided the full facts regarding the trust and her main home to her first tax adviser, or whether by omission the fault lies with her.
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Sir Keir Starmer is reshuffling his cabinet following Angela Rayner’s resignation after admitting she had not paid enough stamp duty on the purchase of a new home.
The prime minister’s former right-hand woman stepped down as deputy prime minister, housing secretary and deputy leader of the Labour Party after standards adviser Sir Laurie Magnus found she had breached the ministerial code.
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She paid standard stamp duty on a flat she bought in Hove, East Sussex, in May after taking advice that it counted as her only home due to her disabled son’s trust owning the family home in Ashton-under-Lyne – but it was established she should have paid more.
Her resignation has left a hole around the cabinet table, which Sir Keir is now filling.
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It was stressed early on Chancellor Rachel Reeves would remain as chancellor, in an attempt to stop the markets moving.
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This is who is moving and where to:
David Lammy – foreign secretary to justice secretary and deputy PM
After flexing his diplomatic muscles with Donald Trump and his deputy JD Vance over the past year, Mr Lammy will now move to the justice brief.
The move is likely to be a blow as the PM had promised, most recently in November, he would be foreign secretary for the whole parliament until 2029.
Although he is no longer holding one of the four great offices of state, he has also been made deputy prime minister, presumably to soften the blow.
Mr Lammy is close to Sir Keir, both as a friend and in his next door constituency, and was seen grinning as he went into Number 10 after being appointed.
David Lammy is now justice secretary and deputy PM. Pic: Reuters
Yvette Cooper – home secretary to foreign secretary
The Labour stalwart had made tackling illegal migration a priority, so the move could be seen as a disappointment for her.
However, she remains in one of the four great offices of state – PM, chancellor, foreign and home.
Yvette Cooper is now foreign secretary
Shabana Mahmood – justice secretary to home secretary
A big promotion, the straight-talking Labour MP will be tasked with tackling the small boats crisis and asylum seeker hotel protests.
She is no stranger to making difficult decisions, deciding to free criminals early to reduce prison overcrowding as justice secretary.
Her move makes it the first time all three great offices of state, after the prime minister, are held by women.
Shabana Mahmood is now home secretary. Pic: PA
Pat McFadden – chancellor of the Duchy of Lancaster and intergovernmental minister to work and pensions secretary and head of “super ministry”
Often seen as Sir Keir’s “number two”, Mr McFadden will take over a newly formed “super ministry”.
It will include the department for work and pensions and the skills remit of the department for education – taking a large part of Education Secretary Bridget Phillipson’s brief and taking over from Liz Kendall as work and pensions secretary.
While it is not a promotion at first glance, it is a much wider role than he has had as chancellor of the Duchy of Lancaster – the highest-ranking Cabinet Office minister after the PM.
Pat McFadden is work and pensions secretary and head of the ‘super ministry’. Pic: PA
Darren Jones – chancellor of the Duchy of Lancaster
It is the second new job in the space of one week for the new chancellor of the Duchy of Lancaster. The close ally of the prime minister was promoted from chief secretary to the Treasury on Monday to chief secretary to the prime minister. And now he gets another new job.
Darren Jones is the new chancellor of the Duchy of Lancaster
Steve Reed – environment secretary to housing secretary
A promotion for the man who has consistently defended the government lifting inheritance tax relief on farmers.
He takes over one of the two major vacancies left by Ms Rayner and will have the massive task of building 1.5 million new homes during this parliament, as promised by the government.
Steve Reed is now housing secretary
Jonathan Reynolds – business and trade secretary to chief whip
A slightly odd move for the MP seen as a steady pair of hands in his business secretary role.
He takes over from Sir Alan Campbell and will now have to hustle Labour MPs to vote with the government – something that has sometimes proved difficult with the current cohort.
Mr Reynolds will also attend cabinet, as is necessary so he can liaise between the party and No 10.
Jonathan Reynolds is the new chief whip
Peter Kyle – science secretary to business and trade secretary
A promotion for Mr Kyle, who is taking over from Jonathan Reynolds.
He is seen as a rising star and impressed Labour MPs when he refused to stand down after suggesting Nigel Farage was on the side of people like Jimmy Savile by opposing the government’s online safety law.
Mr Kyle will be in charge of getting trade deals with other countries over the line.
Peter Kyle is now business and trade secretary
Emma Reynolds – economic secretary to the Treasury to environment secretary
Probably the biggest promotion of the reshuffle, Ms Reynolds is taking on Mr Reed’s role after serving as a junior minister in the Treasury.
She will have to take on farmers and deal with the water companies – a big undertaking.
Emma Reynolds is now environment secretary
Liz Kendall – work and pensions secretary to science, innovation and technology secretary
Pat McFadden has taken her role as work and pensions secretary, while Ms Kendall takes over Peter Kyle’s brief.
He has made AI a major facet of his role so we will wait to see which direction Ms Kendall takes the job in.
Liz Kendall is the new science secretary. Pic: PA
Douglas Alexander – trade policy minister to Scotland secretary
A promotion for the Blair/Brown minister who returned to politics last year after being ousted in 2015 by then 20-year-old SNP MP Mhairi Black.
He takes over from Ian Murray, who has been removed from the cabinet.
Douglas Alexander is the new Scotland secretary
Sir Alan Campbell – Chief whip to Lord President of the Council and leader of the House of Commons
An MP since 1997 and part of Tony Blair and Gordon Brown’s frontbench, Sir Alan is taking over Lucy Powell’s role.
He will be in charge of organising government business in the Commons – a sizeable job.
Who is out?
Lucy Powell has been sacked as leader of the House of Commons.
Ian Murray has been sacked as Scotland secretary.
Bridget Phillipson remains as education secretary but her brief has narrowed as Mr McFadden has taken over the skills part of her job.
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