Angela Rayner, the deputy prime minister, is in the eye of a storm as the finger of blame is pointed at her. She allegedly evaded as much as £40,000 in stamp duty when purchasing an £800k property on the south coast. However, Verrico, the conveyancing firm she engaged, explained it was not in a position to provide tax advice. It then filled the stamp duty return based purely on the information Rayner gave it. Now questions about her tax compliance are coming up. A report — already delayed — from the UK’s Independent Adviser on Ministerial Interests, Prime Minister Rishi Sunak’s Laurie Magnus, is due to be filed this Friday, and it could potentially end Rayner’s political career.
In May, Rayner bought the flat without declaring an interest in her family home in Greater Manchester. She did that because she had sold her stake in that property to a trust in her disabled son’s name. It is still unclear as to who counseled her on the trust structure. According to Verrico, the firm calculated the stamp duty using HMRC’s calculator and based on the facts provided by Rayner. Joanna Verrico, speaking on behalf of the winning firm, explained their approach. She was quick to point out that they do not do trusts or give tax advice.
“I confirm my firm does not deal with trusts or offer tax advice. The stamp duty land tax was calculated using the HMRC calculator and was strictly based on the facts and information provided to us.” – Joanna Verrico
The state of affairs has elicited concern from political friends and foes. Bridget Phillipson, one of Rayner’s killjoy stormtroopers, confirmed that the deputy prime minister did indeed get legal advice ahead of purchasing the property. She was very clear that he did not deviate from that advice during the transaction. Unknown to the new owner, though, more stamp duty was later found to be due.
“The deputy prime minister has been clear for some time that she believed she had acted in good faith, that she had paid what was required of her through that house purchase. It then became clear subsequently that that wasn’t the case, that additional stamp duty was owed.” – Bridget Phillipson
Rayner’s allies assert that she did not initially grasp the tax implications of her son’s trust arrangement. But they only consulted two experts on trust law before making the purchase. Nevertheless, as she did not own any other property at that time, she still thought that she was eligible for a stamp duty concession rate.
The chancellor, Rachel Reeves, has publicly defended Rayner throughout the controversy, insisting that she has full confidence in her integrity.
“I have full confidence in Angela Rayner. She’s a good friend and a colleague. She has accepted the right stamp duty wasn’t paid. That was an error, that was a mistake. She is working hard now to rectify that, in contact with HMRC, to make sure that the correct tax is paid.” – Rachel Reeves
The political consequences of this development cannot be overstated. Laurie Magnus is on the verge of publication of a new report that will examine Rayner’s tax compliance. If true, this upcoming revelation has serious implications for her political future. UK Labour Party leader Keir Starmer has refused to say for the past two months that he would fire Rayner. This decision is dependent on the finding that she has broken the ministerial code.
“My experience is [Magnus] will be comprehensive in the report that he gives me. He will be quick, and that’s what I’m expecting. And so I want to let that process take its course.” – Keir Starmer
In the shadow of these recent events, we witnessed a senseless vandalism attack on Rayner’s Hove flat. Someone else case-wide sign-painted “tax evader” in graffiti across the tax use building. A spokesperson for Rayner criticized this behavior as “unacceptable and over the line.” Their release underscored the charged environment that has surrounded her case.
Angela Rayner is now wading through a worse mess over her house purchase and tax liabilities. The soon-to-be issued report from Magnus will determine the latitude of Peters’ political survival and establish an important new accountability precedent for all public officials about handling money in their charge.