Angela Rayner Admits Underpaying Stamp Duty on £800,000 Seaside Flat

Published: 04 September 2025 | The English Chronicle Desk

Britain’s Deputy Prime Minister Angela Rayner has admitted that she underpaid stamp duty on her £800,000 seaside property in Hove, acknowledging what she described as a serious error in judgment and referring herself to the prime minister’s ethics adviser in a bid to maintain transparency. The revelation, confirmed late Wednesday, has thrown Labour into renewed controversy at a time when the party is under mounting pressure in the polls and struggling to reinforce its image as the voice of working people.

Rayner disclosed that she had mistakenly paid the lower rate of stamp duty on the south coast flat, which she purchased in May 2025. Tax specialists have since advised that the property could not be treated as her sole residence due to provisions linked to a family trust established in 2020 for her son, who has lifelong disabilities. As a result, she is now liable for the higher rate of stamp duty, with experts estimating she may owe up to an additional £40,000.

The Deputy Prime Minister expressed deep regret over the matter, telling The Guardian that she had relied on legal advice which failed to take into account the complexities of the trust. “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,” she said. Rayner stressed that she was working with HM Revenue and Customs to settle the outstanding amount.

The Ashton-under-Lyne MP explained that she and her children continue to reside primarily in the Greater Manchester family home, which she had transferred into a trust during her divorce. Although she had relinquished her direct financial stake in the house, tax rules deem her to retain ownership through her children’s rights under the trust, making the Hove flat technically a second property. This distinction, tax experts say, should have triggered the higher stamp duty rate of £70,000 rather than the £30,000 she originally paid.

In her statement, Rayner sought to reassure the public that her actions were not an attempt to avoid tax but stemmed from legal complexities. “Every decision I have made has been guided by what I believe to be in my children’s best interests,” she said, adding that she had already referred herself to the ethics adviser, Sir Laurie Magnus, and would cooperate fully with his investigation.

Prime Minister Keir Starmer offered a show of support, telling MPs that Rayner had gone “over and above” in setting out the details of her financial affairs, even applying to the court to lift a confidentiality order involving her son. “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 to ensure that all information is in the public domain,” he said during Prime Minister’s Questions.

Despite Starmer’s backing, Rayner is likely to remain under scrutiny. Political opponents have accused her of hypocrisy, pointing out that the Labour government is preparing to raise taxes on property owners in the forthcoming autumn budget. Conservative leader Kemi Badenoch seized on the controversy, saying: “If he had a backbone, he would sack her.”

The episode comes at a critical juncture for Labour, which is trailing Reform UK in recent polls and seeking to project an image of integrity and accountability. While Rayner appears safe in her post until the ethics adviser delivers his findings, questions over her judgment and Labour’s handling of financial transparency are expected to persist.

Rayner concluded her statement by reiterating her commitment to public service and to resolving the matter fully: “I deeply regret the error that has been made. I am committed to providing the transparency that public service demands.”