Has Angela Rayner resigned? Deputy Prime Minister stands down after underpayment of stamp duty on £80k seaside flat

Sir Keir Starmer's second-in-command has stepped down after admitting she should have paid more stamp duty on a home she bought in Hove, East Sussex, as it was her second property. The Deputy Prime Minister has faced mounting pressure to stand down over recent days after admitting she underpaid stamp duty on a the £80k flat she bought earlier this year.

Ms Rayner, who is also the Housing Secretary, paid £40,000 less of the surcharge on the property than she should have, as she claimed it was her main home rather than a second home. She was under fire after using £160,000 from a trust set up to care for her disabled son to buy the £800,000 seafront flat.

The Deputy Prime Minister sold a 25 per cent share of her house in Ashton-under-Lyne to the trust for £162,500. She said on Wednesday that her son, who was born prematurely, had received an award in 2020 and that a trust was then set up to look after his interests.

The Telegraph reported that the payout followed an 11-year legal battle waged between the Rayners and the hospital where her son was born. Sources suggested the NHS had paid compensation following difficulties during his birth and subsequent care in 2008. Final payments can take years to be made because of the lengthy process for assessing long-term damage.

It’s unclear how much money was paid out as part of the damages claim but it was clearly sufficient for the trust to buy Ms Rayner’s share at the end of January this year. She then used the money as a deposit on the flat in Hove that she purchased in May this year, on which she now has a £650,000 mortgage.

But she paid only £30,000 in stamp duty rather than £70,000 that should have been paid in tax when purchasing a second home. Ms Rayner, having previously insisted she had paid all appropriate tax, accepted it was an error.

Ms Rayner said previously on the issue: “I have now been advised that although I did not own any other property at the time of the purchase, the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities. I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.

“The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce, and the complexities of ensuring your children’s long term security. Every decision I have made has been guided by what I believe to be in my children’s best interests.

“I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands. It is for that reason I have today referred myself to the Independent Adviser on Ministerial Standards, and will provide him with my fullest cooperation and access to all the information he requires.”