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Politics
05 September 2025

Angela Rayner Faces Stamp Duty Scandal Fallout

Labour’s deputy prime minister admits tax underpayment on Hove flat, triggering ethics probe, party infighting, and calls for her resignation as vandalism targets her home.

Angela Rayner, the UK’s Deputy Prime Minister and Housing Secretary, is fighting to keep her political career on track after admitting she underpaid stamp duty on her £800,000 seaside flat in Hove. The controversy has sparked a political firestorm, accusations of hypocrisy, and even vandalism at her property, all while she awaits the results of a formal investigation into whether she broke ministerial rules.

The saga began when Rayner received fresh legal advice on Wednesday, September 3, 2025, confirming she should have paid a higher rate of stamp duty when she bought the Hove flat earlier this year. According to BBC and other news outlets, the underpayment stemmed from complex arrangements involving her family home in Greater Manchester, which she shared with her ex-husband and their children.

Rayner explained that, following her divorce in 2023, the ownership of the family home was split: she and her ex-husband each retained a 25% share, while the remaining 50% was transferred to a court-instructed trust set up to fund care for their son, who has lifelong disabilities. In January 2025, Rayner sold her remaining stake in the family home to the trust and used the proceeds—her “life savings,” as she described them—to help purchase the Hove flat, paying £30,000 in stamp duty under the assumption it was her primary residence.

However, as Rayner revealed in a statement, “fresh legal advice revealed the provisions around the trust meant she should have paid the higher stamp duty rate on the purchase of the Hove flat.” Because her son, the trust’s beneficiary, is under 18, Rayner and her ex-husband are still considered co-owners of the Greater Manchester property for stamp duty purposes. This meant she should have paid the “second home” rate of £70,000, not the lower rate she initially paid—leaving a shortfall of £40,000.

Rayner insisted she had not tried to dodge the extra tax, blaming the mistake on initial legal advice that “failed to properly take account” of her situation. She said, “I thought I'd done everything properly, and I relied on the advice that I received and I'm devastated because I've always upheld the rules and always have done. And always felt proud to do that.” She added that she had “spoken to my family about it” and that her “number one priority” was always to support her children, especially her vulnerable son.

After receiving the final legal opinion on Wednesday morning, Rayner immediately referred herself to the Prime Minister’s independent adviser on ministerial standards, Sir Laurie Magnus, and contacted HMRC to resolve the tax issue. She also updated Prime Minister Keir Starmer “at the earliest opportunity,” according to a Number 10 spokesperson. The spokesperson added that Starmer had been kept informed “as appropriate” about Rayner’s tax affairs throughout the process.

In a show of support, Starmer told the House of Commons on September 3, “She has explained her personal circumstances in detail. She has gone over and above in setting out the details, including asking a court to lift a confidentiality order in relation to her own son. I know from speaking at length to the Deputy Prime Minister just how difficult that decision was for her and her family. She did it to ensure that all information is in the public domain. She has now referred herself to the independent adviser. That is the right thing to do, but I can be clear, I am very proud to sit alongside a Deputy Prime Minister.”

Cabinet ministers also rallied around Rayner. Education Secretary Bridget Phillipson said Rayner “acted in good faith” and believed “she followed all the rules.” Chancellor Rachel Reeves declared she had “full confidence” in Rayner and praised her for “trying to do the right thing” but acknowledged the “mistake” was now being rectified with HMRC.

Despite this support, Conservative politicians and Reform UK called for Rayner’s resignation. Tory Party chairman Kevin Hollinrake said on BBC Breakfast, “It cannot be claimed that you took reasonable care when the information is that obvious.” He described Rayner’s position as “untenable,” especially given her previous criticism of others for tax avoidance. Conservative leader Kemi Badenoch added during Prime Minister’s Questions, “If the Prime Minister had a backbone, he would sack Ms Rayner.”

Rayner’s critics accused her of hypocrisy, with Reform UK deputy leader Richard Tice telling Sky News, “She was so vocal in attacking opposing politicians when she was in opposition that she can't stand up and say 'I'm the biggest hypocrite in the land'. She has to offer her resignation to the Prime Minister.” Tory shadow chancellor Sir Mel Stride tweeted, “It's utterly extraordinary that while working families and businesses are being hammered by Labour's tax hikes, Angela Rayner has failed to pay the right amount of stamp duty. The Deputy Prime Minister should not be setting the rules when she fails to keep them herself.”

The heat of the political row spilled onto the streets as Rayner’s Hove flat was vandalised on Thursday, September 4. Graffiti reading “tax evader” and “Rayner tax avoidance” was scrawled on the property and nearby construction boards, according to The Independent. Another message included the word “b**ch,” highlighting the personal toll the controversy has taken on Rayner and her family.

Rayner said the existence of the trust had not previously been public knowledge and that she was prevented from sharing details due to a court order—lifted only after she applied to have it waived to ensure full transparency. “The reason why those confidential clauses were in place was to protect my son, who, through no fault of his own, he's vulnerable, he's got this life-changing, lifelong conditions and I don't want him or anything to do with his day-to-day life, to be subjected to that level of scrutiny because it's his and my ex-husband ... it's not fair on them,” she told Sky News.

Downing Street has insisted that Starmer retains full confidence in Rayner but has declined to say whether she would be sacked if found to have breached ministerial standards. The Prime Minister’s spokesperson said, “As she's set out in her statement today, she's referred herself to the independent adviser. She will provide him with her fullest co-operation and access to all the information he requires. It is now up to the independent adviser to conduct that process.”

Rayner’s fate now rests with the outcome of Sir Laurie Magnus’s investigation. If HMRC finds her actions were careless, she could face a penalty of up to 30% of the underpaid tax—an additional £12,000 on top of the £40,000 shortfall. Meanwhile, a public poll has been launched, asking whether she should resign over the scandal, reflecting the divided public opinion on her future.

As the investigation continues, Rayner’s political future hangs in the balance. For now, she remains in her post, supported by her party’s leadership but under intense scrutiny from the opposition, the media, and the public alike.