Why Angela Rayner could yet be blamed for stamp duty error

Angela Rayner’s mentation for her nonaccomplishment to wage the close stamp work connected her location successful Hove rests connected a assertion that she was wrongly advised astir her taxation vulnerability erstwhile buying the spot earlier this year.

Following media reports that she had avoided taxation of up to £40,000 she took caller proposal and present acknowledges she should person paid the second-home stamp work surcharge, taking the taxation owed connected the £800,000 spot from £30,000 to £70,000.

She says the disorder lies successful the complexity of her home affairs, arising from arrangements made to attraction for her son, who has "lifelong disabilities" and peculiar acquisition needs.

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In 2020 an grant was made to Ms Rayner's lad pursuing what she called "a profoundly idiosyncratic and distressing incident" arsenic a premature baby, and a spot was established to negociate the grant and his interests.

She is not explicit successful her connection but it is presumed the "award" was financial, perchance made successful compensation.

Ms Rayner says she and her past hubby Mark Rayner committed to transportation their involvement successful the household location successful Ashton nether Lyne to the trust, of which their lad is the sole beneficiary.

In 2023 the mates divorced but agreed that their children would stay successful the household location portion they routinely moved successful and retired to attraction for them, an statement known arsenic nesting. At that clip Ms Rayner said immoderate of their involvement successful the household location passed to her son's trust

In January 2025 the lawman premier curate says she sold her remaining involvement successful the location to her son's spot and utilized it arsenic a deposit connected a level successful Hove, valued astatine astir £800,000. She took retired a owe to screen the remainder of the purchase.

At the clip she says she took taxation proposal and was told that, fixed she nary longer owned immoderate different spot she was lone required to wage modular stamp duty, which would person totalled astir £30,000.

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Following media reporting past period she says she sought caller proposal from "senior taxation counsel" and was told she was successful information liable to wage the second-home stamp work surcharge, an further 5% level charge, due to the fact that of what she calls "complex deeming provisions" relating to her son's trust.

Deeming provisions are a ineligible instrumentality that make a "legal fiction" to simplify analyzable issues, often successful narration to tax.

Ms Rayner gives nary details of the provisions, but 1 mentation is that if she has rights nether the presumption of the spot to unrecorded successful the household location for life, it should beryllium treated arsenic her main residence for the purposes of stamp duty.

She says that the Ashton-under-Lyne spot remains her household home, wherever she is registered for official, fiscal and aesculapian purposes.

In December 2024 Ms Rayner was granted the usage of a grace-and-favour level successful Admiralty House successful Whitehall successful her relation arsenic lawman premier minister, and gave up a rented spot successful London to determination in. She had classified this arsenic her 2nd location for Council Tax purposes, which arsenic a effect is paid for by the government.

The proposal that counts present is that which Sir Laurie Magnus gives to the Prime Minister. The government's autarkic morals advisor whitethorn privation to cognize if Ms Rayner provided the afloat facts regarding the spot and her main location to her archetypal taxation adviser, oregon whether by omission the responsibility lies with her.