Read ethics adviser's verdict on Angela Rayner's tax error

Ethics advisor Sir Laurie Magnus said Angela Rayner had "acted with integrity and with a dedicated and exemplary committedness to nationalist service" - but concluded she breached the ministerial codification implicit her taxation affairs.

Ms Rayner resigned from authorities arsenic a effect of her taxation error.

Here is Sir Laurie's missive successful full:

Dear Prime Minister,

Following a self-referral by The Rt Hon Angela Rayner MP, Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government connected 3 September 2025, I person undertaken an introspection of the circumstances and facts connected to caller allegations astir Ms Rayner's spot ownership and taxation affairs.

I should admit that Ms Rayner has provided her afloat and unfastened practice successful assisting maine with my inquiries. Her determination to supply greater nationalist transparency by applying to region the confidentiality undertaking successful a tribunal bid protecting her family's home fiscal circumstances was, successful particular, intelligibly precise hard to reconcile with her understandable privation to shield members of her household from the glare of media attention.

It is simply a bittersweet reflection of the astir intolerable pressures that tin look salient politicians successful protecting the privateness of their families, not least, arsenic Ms Rayner highlighted successful her connection connected 3 September, "the world that household beingness is seldom straightforward, peculiarly erstwhile dealing with disability, divorcement and the complexities of ensuring your children's agelong word security".

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Ms Rayner has explained publically that, pursuing caller allegations and speculation, and successful bid to guarantee herself of compliance with her obligations, she sought ineligible proposal from starring taxation Counsel. This covered her idiosyncratic presumption successful narration to assembly tax, stamp work onshore tax, superior gains taxation and inheritance tax.

I person had entree to this written sentiment and, arsenic a effect of its conclusions, person focused my inquiries - and this proposal - connected the issues relating to Ms Rayner's acknowledged nonaccomplishment to wage the close magnitude of stamp work onshore taxation (SDLT) connected the acquisition of a spot successful Hove, Sussex, successful May 2025. It is the realisation of this mistake that prompted Ms Rayner, soon aft having received the last taxation instrumentality advice, to notation the substance to maine connected Wednesday 3 September.

Ms Rayner has acceptable retired successful detail, publicly, the details of her family's home arrangements and her determination to merchantability her 25% involvement successful the freehold of the household location successful Ashton-under-Lyne and to acquisition a spot successful Hove. I bash not request to repetition these details here, different than to enactment that they inevitably entailed a sizeable grade of complexity.

Having sold her 25% stock successful the household location successful Ashton-under-Lyne, Ms Rayner ceased to ain immoderate portion of that property. However, nether the applicable legislation, a idiosyncratic who does not ain a spot tin nevertheless beryllium deemed to clasp an involvement successful it if definite circumstances apply; these see wherever that spot is held by a trust, and the beneficiary of the spot is simply a kid of that idiosyncratic nether the property of 18.

I recognize determination are further complexities, for illustration concerning the peculiar benignant of spot successful question and the crushed for which the spot was established. Taken together, it appears that - peculiarly successful the discourse of the specializer benignant of spot successful question - the mentation of these rules is complex.

With Ms Rayner's afloat practice and assistance, I person reviewed applicable documentation from the spot transaction. This has included the proposal she received astatine the clip from the ineligible firms progressive and the associated documentation that was prepared for her to effect the purchase. This proposal gave emergence to Ms Rayner's knowing - which I see to person been held successful bully religion - that the little complaint of SDLT was applicable erstwhile purchasing the spot successful Hove.

It is not indispensable for maine to item the circumstantial contents of this proposal oregon the associated documentation but, having reviewed it, I would gully 4 conclusions:

a) Ms Rayner was unfastened astir the beingness of the Trust and considered that, betwixt them, the firms advising her had due cognition and consciousness of the details and circumstances of the Trust;

b) connected the ground of the proposal she received, Ms Rayner believed that the little complaint of SDLT would beryllium applicable; so she was doubly informed successful penning that this was the case; but

c) successful those 2 instances, that proposal was qualified by the acknowledgement that it did not represent adept taxation proposal and was accompanied by a suggestion, oregon successful 1 lawsuit a recommendation, that circumstantial taxation proposal beryllium obtained; and

d) if specified adept taxation proposal had been received, arsenic it aboriginal was, it would apt person advised her that a higher complaint of SDLT was payable.

The Ministerial Code sets retired the precocious standards that, arsenic Prime Minister, you expect each ministers to follow. It enshrines the committedness to uphold the Seven Principles of Public Life, and details "the overarching work connected Ministers to comply with the instrumentality and to support the integrity of nationalist life".

The Code begins astatine 1.2 by stating that "Ministers are expected to embody the principles of nationalist work and to acceptable a affirmative illustration arsenic they govern successful the nationalist interest. Ministers should recognise that, arsenic office-holders, they are held to the highest imaginable standards of due conduct, and guarantee that they are surviving up to those standards successful their words and actions".

Ms Rayner profoundly regrets the mistake she has made successful narration to the underpayment of SDLT for the acquisition of her spot successful Hove. On realisation of this error, she has sought rapidly to close the mistake and to notation herself to HMRC successful bid to guarantee that she pays the close amount. I person nary uncertainty that she has been motivated successful the absorption of her spot and fiscal arrangements by a tendency to enactment successful the champion interests of her children, and with the volition to wage each due taxes and fulfil each her ineligible obligations.

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It is highly unfortunate, however, that Ms Rayner failed to wage the close complaint of SDLT connected this purchase, peculiarly fixed her presumption and responsibilities arsenic the Secretary of State for Housing, Communities and Local Government and arsenic Deputy Prime Minister.

She believed that she relied connected the ineligible proposal she had received, but unluckily did not heed the caution contained wrong it, which acknowledged that it did not represent adept taxation proposal and which suggested that adept proposal beryllium sought.

I americium conscious of the acute challenges Ministers look - possibly uniquely - successful managing the demands of their idiosyncratic lives and their nationalist responsibilities. However, the work of immoderate payer for reporting their taxation returns and settling their liabilities rests yet connected themselves alone.

Given the conjunction of the acknowledged complexity of her household circumstances, her presumption successful Government (most importantly arsenic Deputy Prime Minister) and the consequences of getting specified a calculation wrong, it is profoundly regrettable that the circumstantial taxation proposal was not sought.

I judge Ms Rayner has acted with integrity and with a dedicated and exemplary committedness to nationalist service. I consider, however, that her unfortunate nonaccomplishment to settee her SDLT liability astatine the close level, coupled with the information that this was established lone pursuing intensive nationalist scrutiny, leads maine to counsel you that, successful narration to this matter, she cannot beryllium considered to person met the "highest imaginable standards of due conduct" arsenic envisaged by the Code.

Accordingly, it is with heavy regret that I indispensable counsel you that successful these circumstances, I see the Code to person been breached.

Yours sincerely,
Sir Laurie Magnus CBE
Independent Adviser connected Ministerial Standard