Angela Rayner, the Deputy Prime Minister and Labour leader, in the spotlight over a major blunder. She failed to pay stamp duty on her latest real estate purchase. In May 2023, Rayner purchased a property in Hove for a whopping £800,000. She funded the purchase by selling her share of a home in Greater Manchester. After completing the purchase, she confided that she hadn’t paid the correct higher level of stamp duty on second homes.
The row reached its peak when Rayner declared the Hove flat her main home for tax purposes. But she has another property – a grace-and-favour apartment on Admiralty House, which is based on Whitehall. This problematic situation creates ambiguity around her potential tax liability as well as compliance with regulations around foreign individuals owning or possessing US real property.
Rayner’s purchase of the Hove flat came against the backdrop of a tumultuous period of personal change. In 2023, after being married for 23 years, she and her former husband Mark divorced but entered into a new kind of co-parenting arrangement called “nesting.” This structure enables them to trade back and forth between occupying their former residence while their kids stay put. Though the divorce divided them, according to reports out of the UK, since their reported split Rayner and Mark have become even closer.
Clarification on Property Ownership
When Angela Rayner got divorced, she removed her name from the house deed in Greater Manchester. She announced that she was no longer identifying as an owner. She painted a picture of the home, as her family’s primary property, focal point of her children’s education and their everyday lives.
“It remains my family home, as it has been for over a decade. It contains the majority of my possessions and it is where I am registered for most official and financial purposes ranging from credit cards to the dentist to the electoral roll. But most importantly, it is where my children live and have gone to school and now college, and where I regularly live while caring for them.” – Angela Rayner
Rayner divested her interest in the Greater Manchester residence. She subsequently transferred it to a trust that she formed in late 2020. This trust was established with resources awarded following a traumatic experience in her son’s infancy. The trust now has equity in the Ashton-under-Lyne property rather than Rayner’s ownership share.
Stamp Duty Oversight
Rayner’s recent purchase of her Hove flat raised fears that she may owe back stamp duty. She decided to pay the regular stamp duty of £30,000. This decision spared her from this punitive second-home rate which could have gone up to £70,000. This inconsistency has called into question her adherence to tax laws and her potential misrepresentation of property ownership status.
In the face of such misogynistic tactics, the Labour Party has vociferously defended Rayner. Keir Starmer, leader of the opposition Labour Party, publicly nominated her and expressed his full-throated support. He referred to her as “incredible person …” but also deputy prime minister.” She was great.
“Angela is an incredible person [and] deputy prime minister,” – Keir Starmer
Rayner’s present situation raises questions about the sometimes convoluted process of owning property, particularly when it comes to assuming tax obligations. Subject to relentless questioning by political adversaries and the press, her task ahead is monumental.
Release from Court Order
In a greatly welcomed development, Angela Rayner has come out from under a particularized court order. Now, she is finally able to share the details of the trust she set up. This release could mean more transparency when it comes to her sales force’s financial dealings and shady property ownership.
This situation is changing quickly. It remains to be seen how this scandal will affect Rayner’s political career and how voters will perceive her going forward. The Labour Party will mostly fall in line around her, judging by the last few days, but hope to corral criticism as it comes.