Angela Rayner has admitted she underpaid stamp duty on her £800,000 seaside flat, after coming under intense pressure to be more transparent about her property arrangements.
The deputy prime minister has referred herself to the prime minister’s ethics adviser after confirming she will have to pay more of the property tax. She incorrectly paid the lower rate on the flat in Hove, she said. Experts have said the bill could run to as much as an extra £40,000.
The confirmation that the housing secretary has underpaid tax could place Rayner’s position in jeopardy as Labour, which is trailing behind Reform UK in the polls, has struggled to convince swathes of the public it is on the side of working people.
She could also face charges of hypocrisy as the government is expected to increase taxes on property owners in the autumn budget.
In a highly personal statement to the Guardian, Rayner said she “deeply regretted” the error had been made, after classifying the flat as her only property, despite spending much of her time with her children at the family house in Ashton-under-Lyne, Greater Manchester.
In an early sign of support, Keir Starmer told MPs he was “very proud to sit alongside” Rayner on the frontbench of the Commons. The prime minister, who gave his deputy a pat on the shoulder when he arrived for PMQs, said referring herself to the ethics adviser was the “right thing to do”.
“She has explained her personal circumstances in detail. She has gone over and above in setting out the details, including asking the court to lift a confidentiality order in relation to her own son,” he said.
“I know from speaking at length to the deputy prime minister just how difficult that decision was for her and her family, but she did it. She did it to ensure that all information is in the public domain.”
Rayner appears to be safe in her post until the ethics adviser, Laurie Magnus, concludes whether she has broken the ministerial code and, if so, how severely. Starmer, however, is likely to face ongoing pressure over her position. Kemi Badenoch, the Tory leader, said: “If he had a backbone he would sack her.”
Months before the purchase, Rayner had put her stake in her constituency home in Ashton into a trust, which was originally set up in 2020 to manage a payment to one of her sons, who, after a “deeply personal and distressing incident” as a premature baby, had been left with lifelong disabilities.
In May 2025, when she bought the south coast property, Rayner said she was advised by lawyers over the level of stamp duty required. Subsequently, tax experts had told her that the flat could not be treated as her only residence because of the provisions of the trust.
Tax experts say that, even though she gave up her financial stake in the Ashton house after her divorce, Rayner would be regarded as still owning it if she or her children were a beneficiary under the trust and entitled to occupy the dwelling for life.
As the flat was an additional dwelling, she would be expected to pay the higher stamp duty rate of £70,000, rather than the £30,000 she actually paid. She is now working with HM Revenue and Customs to establish exactly how much is due.
Regardless of ownership, the Ashton property remains her family home and where she is registered for most official and financial purposes, including council tax and the electoral roll. It is where her children live full-time, while she and her former husband take turns living at the house and caring for them.
“While I do not find it easy to publicly discuss personal and sometimes distressing family matters, I have always taken my responsibility as an MP and deputy prime minister seriously and tried to be as open as possible while protecting my family,” Rayner told the Guardian.
“To address the allegations made against me I have now taken the difficult decision to explain why my arrangements are as they are.”
Downing Street had revealed on Monday that Rayner was prevented from publicising all of the details about her property ownership by a court order. In the interests of transparency, she applied to the court and was given permission to discuss them publicly on Tuesday night.
In her statement, Rayner said: “When purchasing the property my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.
“However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions.
“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.”
She added: “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.”
