Angela Rayner has resigned as Deputy Prime Minister following an investigation into the amount of stamp duty she paid on her £800,000 flat in Hove. She has also stepped down as Deputy Leader of the Labour Party.
She later admitted she should have paid more and that she was poorly advised by the conveyancing firm she used. A spokesperson for the firm has said they did not offer Rayner tax advice and completed her stamp duty return based only on information she provided.
Following an ethics report and pressure from several MPs and members of the public, on 5 September Rayner announced that she would be stepping down from her role.
In her resignation letter to the Prime Minister, Rayner said, ‘I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error.’
She added, ‘I must also consider the significant toll that the ongoing pressure of the media is taking on my family. While I rightly expect proper scrutiny on me and my life, my family did not choose to have their private lives interrogated and exposed so publicly. I have been clear throughout this process that my priority has, and always will be, protecting my children and the strain I am putting them under through staying in post has become unbearable.’
Why did Angela Rayner resign?
When the story broke that Rayner had failed to pay the right amount of stamp duty – a tax paid by the buyer of a UK residential property when the purchase exceeds £125,000, ranging from 5% to 12% depending on the price of the property – the former deputy prime minister found herself in hot water.
'Following the substantial scrutiny surrounding my living arrangements,' she said in a statement on 3 September, 'I wanted to set out the facts as openly and transparently as I can.
'In 2023, my ex-husband and I divorced. As parents who have been through divorce will understand, the top priority for us during that process was the wellbeing of our children and helping them navigate this change. To provide maximum stability during this transition, we agreed to a nesting arrangement where the children remain in the family home full-time while we alternate living there. We also wanted to ensure that our child, who has special educational needs, was provided for as part of the divorce settlement.'
Rayner explained that she sold her stake of her family home to a trust set up for her disabled son and used the money to pay the deposit for her flat. She claims she was advised that she was liable for the standard rate of stamp duty, but has since been advised that due to the complex provisions of her son's trust she was liable to pay additional tax. 'I deeply regret the error that has been made,' she concluded. 'I am committed to resolving this matter fully and providing the transparency that public service demands.'
She initially received the support of Keir Starmer, who said, 'I do think in the end we need to establish the facts, which the independent advisor will do and come to a conclusion.
'I don't think it'll take long now for that bit of process to conclude and then, of course, it does fall to me. I completely accept that, to make a decision based on what I see in that report.'
The report determined whether Rayner sought proper tax advise from a qualified person, i.e. a tax specialist or accountant, not just a conveyancing solicitor or a legal expert on trusts.
As a member of the cabinet, per the ministerial code, Rayner had a responsibility to find out and pay the right amount of tax when she bought her flat. The code states there is an 'overarching duty on ministers to comply with the law' and they are expected 'to behave in a way that upholds the highest standards of propriety'.
What were the results of the ethics report?
Downing Street confirmed that the report about the deputy prime minister has been completed and Rayner has since confirmed that she will step down. Sir Laurie, the ethics watchdog, found that Rayner did breach the ministerial code and she failed to pay the correct amount of £40,000 stamp duty.
‘It is deeply regrettable that the specific tax advice was not sought,’ he said in a statement. Sir Laurie added that Rayner ‘acted with integrity and with a dedicated and exemplary commitment to public service'.