Angela Rayner is fighting for her political future after admitting she underpaid stamp duty on her seaside flat. The Deputy Prime Minister has referred herself to both the Government's independent ethics adviser and HM Revenue and Customs after making the admission.
The Conservatives have called for the taxman to investigate whether Rayner has evaded tax, which would be illegal. Tory leader Kemi Badenoch and Reform's Nigel Farage have both called for the Deputy Prime Minister to resign.
Conservative party chairman Kevin Hollinrake has written to HMRC calling for a tax evasion investigation. He also called on the tax authority to consider applying a penalty for tax evasion, which could be as much as £40,000 - the full amount Rayner allegedly saved.
Political backing
Sir Keir Starmer is "determined" to save his deputy, according to the Times. At Prime Minister's Questions, Starmer gave his backing to Rayner, telling MPs he was "very proud to sit alongside" her.
Science Secretary Peter Kyle told LBC that the Deputy Prime Minister was "being treated very differently" because she was from a working class background. Starmer described Rayner's self-referral to the ethics adviser as "the right thing to do".
Property arrangement
Rayner said she received inaccurate legal advice that led her to underpay tax when buying a flat in Hove in May. She has said she is "working with expert lawyers and with HMRC to resolve the matter and pay what is due".
The Deputy Prime Minister initially took legal advice suggesting she was "liable to pay standard stamp duty" on the south coast property. However, further advice from a leading tax counsel revealed this was incorrect and she owed additional stamp duty.
The issue arose because Rayner had put her stake in her constituency home in Ashton-under-Lyne into a trust set up in 2020 for her disabled son. Tax experts said the Hove property could not be treated as her only residence because of the nature of the trust arrangement.
Sources used: "Times", "LBC" Note: This article has been edited with the help of Artificial Intelligence.
