Deputy Prime Minister Angela Rayner is facing mounting pressure as Conservative leaders call for a formal investigation by HM Revenue & Customs (HMRC) over an alleged underpayment of stamp duty on a seaside property in Hove.
The controversy erupted after Rayner admitted receiving inaccurate legal advice that led to a tax shortfall. Tory Party Chairman Kevin Hollinrake has written to HMRC, urging them to examine whether the Deputy PM deliberately misclassified the property to avoid paying the higher rate typically applied to second homes.
“This contention of innocent reliance on defective advice cannot withstand scrutiny,” Hollinrake stated, suggesting penalties ranging from £12,000 to £40,000 depending on HMRC’s assessment of intent.
Rayner has since referred herself to the Prime Minister’s independent ethics adviser and confirmed she is working with legal experts and HMRC to resolve the issue. She claims the property was placed in a trust for her disabled son, complicating its classification under tax law.
Political Fallout and Accusations of Hypocrisy
The timing of the scandal is politically charged, with Labour leader Sir Keir Starmer defending Rayner during Prime Minister’s Questions, praising her transparency and leadership. However, critics accuse Rayner of hypocrisy, citing her past condemnation of Tory figures over tax ethics.
Science Secretary Michelle Donelan suggested Rayner is being treated unfairly due to her working-class background, stating:
“Just because it is Angela, with her accent and her background, people are treating her in a way they wouldn’t if she were a Tory MP born into wealth”.
Tax Experts Weigh In
Experts argue the UK’s stamp duty rules are overly complex, especially when trusts and multiple residences are involved. The case has reignited calls for a simplified tax system with clearer guidance for both taxpayers and HMRC.
As scrutiny intensifies, Rayner’s case not only tests her political standing but also highlights growing frustrations with the UK’s complex tax framework. Whether HMRC decides to penalize her could set a precedent for how similar cases are treated in the future.
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