Deputy PM Faces Scrutiny Over £800,000 Flat
Deputy Prime Minister Angela Rayner has admitted she underpaid stamp duty on her £800,000 seaside flat in Hove and has referred herself to the prime minister’s ethics adviser. Rayner confirmed she had incorrectly paid the lower rate of property tax and now faces an additional bill that could reach £40,000.
The admission comes at a politically sensitive time for Labour, which is trailing Reform UK in the polls and attempting to reinforce its image as a party that represents working people. The controversy has already sparked accusations of hypocrisy, as the government prepares to raise property-related taxes in the upcoming autumn budget.
Personal Statement and Political Support
In a statement to the Guardian, Rayner said she “deeply regretted” the error, explaining that she had classified the Hove flat as her only property despite continuing to live part-time at the family home in Ashton-under-Lyne with her children. She stressed that her decisions were shaped by “disability, divorce and the complexities of ensuring long-term security” for her children.
Prime Minister Keir Starmer backed his deputy, telling MPs he was “very proud to sit alongside” her, noting she had gone “over and above” in disclosing personal details, including applying to lift a court order covering her son’s trust arrangements. However, opposition leader Kemi Badenoch said Starmer should sack her if he “had a backbone.”
Tax Complications Around Family Trust
The controversy stems from a trust Rayner established in 2020 to manage financial support for her son, who was left with lifelong disabilities after a medical incident as a premature baby. Months before purchasing the Hove flat in 2025, Rayner transferred her financial stake in the Ashton property into the trust.
Tax experts argue that because she and her children are beneficiaries entitled to occupy the Ashton home, HMRC would deem it a second property. That classification means she should have paid a higher rate of £70,000 in stamp duty instead of the £30,000 she did. Rayner has since sought advice from senior tax counsel and is working with HMRC to settle what she owes.
Next Steps and Political Fallout
Rayner’s fate now rests with Laurie Magnus, the prime minister’s independent ethics adviser, who will determine whether she breached the ministerial code. While Starmer’s public show of support offers her temporary security, the issue threatens to undermine Labour’s broader credibility on taxation and fairness.
“I deeply regret the error that has been made,” Rayner said, adding she was committed to “providing the transparency that public service demands.” Whether that is enough to quell political pressure remains to be seen.
