Angela Rayner Has Admitted She Didn't Pay Enough Tax. Here's Why This Is Such A Big Deal

Deputy prime minister Angela Rayner has referred herself to the standards advisor.After weeks of speculation, Angela Rayner seems to have handed her rivals a win by admitting she did not pay the full amount of stamp duty on her new property.The deputy prime minister – who is also the housing secretary – came under scrutiny last month when it was revealed she had bought a second home by the coast for £800,000.They are in addition to the grace-and-favour Admiralty House in Whitehall, which she uses in her capacity as deputy PM.Here’s why this tax revelation is a major moment, and why Rayner’s political future is now in serious doubt.What’s happened?Second home purchaseRayner’s primary residence was previously believed to be her constituency home in Ashton-under-Lyne, in Greater Manchester.It then emerged that she had purchased a second home in Hove for £800,000.That alone is not problematic, although her critics accused her of hypocrisy for having two homes in a housing crisis.They also questioned her purchase, considering she is preparing to hike council tax on second properties.Tax questions emergeThe Telegraph then reported that Rayner had removed her name from the deed of her Greater Manchester house a few weeks before buying her new flat.That means she would have avoided the £70,000 stamp duty bill she would have paid if the new Hove flat was her second home.By listing it as her primary residence, it’s thought she was able to pay just £30,000 in stamp duty instead.Stamp duty land tax is the amount a property buyer must pay if you buy a property or land over a certain price in England and Northern Ireland – a different tax applies for purchases in Scotland and Wales.Rayner’s team have consistently said she did nothing wrong, even as the Tories referred Rayner to the PM’s independent adviser on ministers’ interests for alleged “hypocritical tax avoidance”.What did Rayner say?BREAKING: Angela Rayner admits she didn't pay enough tax on flat purchase.The Deputy Prime Minister said has referred herself to the standards watchdog while speaking to Sky's @BethRigby on the Electoral Dysfunction podcast.https://t.co/TfIm6OkDuU📺 Sky 501 & YouTube pic.twitter.com/bpY3Hhyj0y— Sky News (@SkyNews) September 3, 2025What was behind her delayed response?The deputy prime minister finally spoke out on Wednesday, confirming that a court order which restricted her from sharing information about her family arrangements was lifted on Tuesday night.She revealed that the restriction was in place to protect the privacy of her son, who has life-long disabilities.The deputy PM told the Guardian, in the interest of “public transparency”, she applied for that to be lifted – and revealed that she did now believe she had mistakenly underpaid on stamp duty.Why did she make such an error?She explained that after her 2023 divorce, she and her ex-husband agreed to a “nesting arrangement” where their children would stay in their Ashton-under-Lyme family home full-time while they shared parenting responsibilities.“We also wanted to ensure that our child, who has special educational needs, was provided for as part of the divorce settlement,” Rayner said.She said the interest in their family home was transferred to her son’s court-instructed trust – of which he is the sole beneficiary – after the divorce.Rayner sold her remaining share of the house to her son’s trust in January 2025, to allow him to enjoy the security of “knowing the home is his”.Rayner said she then bought the property in Hove in May 2025, using the lump sum from selling her stake in the Ashton-under-Lyme house.But, after seeking advice from a “leading tax counsel” after a flurry of tax allegations, she found “the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities.”“Every decision I have made has been guided by what I believe to be in my children’s best interests,” she said. “I deeply regret the error that has been made.”She has referred herself to the independent ethics adviserIn her Guardian statement, Rayner said: “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.”She also revealed she has referred herself to tax revenue and could be liable to pay more tax.She has considered resigningRayner told Sky News she had been “in shock” because she believed she had done everything correctly and followed the rules.But, upon discovering she had underpaid stamp duty, Rayner admitted that she has spoken to her relatives about resigning.She said: “I spoke to my family about it. I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I’ve done is try and support my family and help them.”“It is devastating for me,” Rayner said, adding: “Often my family dragged in because of what my role is and what I do. But I try to uphold the high standards, and that’s why I’ve referred myself so that the independent advice can look at everything.”“People make mistakes, but I conducted myself in trying to do the right thing, and I hope that people can see that,” the deputy prime minister said.What happens now?It’s certainly not the best start to the new parliamentary term, especially as Starmer was trying to turn over a new leaf.But the prime minister said he had full confidence in his deputy during prime minister’s questions on Wednesday.Responding to Tory leader Kemi Badenoch’s probes about Rayner, Starmer said he was “proud” to sit besides the deputy PM who has risen from a working class background.He said she has gone “over and above” to explain her personal circumstances in detail, pointing to the “difficult” decision to lift the court order in relation to her own son in the pursuit of public transparency.It’s likely Rayner’s future depends on the response from the public – will the family conditions surrounding this situation mean she is given more leeway, or is it all too little too late for voters?A senior Labour source told HuffPost UK: “She’s badly damaged but she won’t go or be sacked.”Related...Why Are Some People Suddenly So Concerned About Angela Rayner's 'Primary Residence'?'She's Done Nothing Wrong': LBC Presenter Roasts Richard Holden Over Angela Rayner RowAngela Rayner Has Managed To Trigger The Tories By Buying A House

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