Angela Rayner Avoids £40,000 Stamp Duty on New Seaside Flat

Deputy Prime Minister Angela Rayner has saved £40,000 in stamp duty by claiming her newly purchased seaside flat in Hove is her main residence. This strategic move came after she reportedly removed her name from the deeds of her property in Greater Manchester, facilitating the acquisition of the £80,000 flat without incurring the substantial tax typically associated with second homes.

According to a report by the Telegraph, the transaction allowed Rayner to avoid a hefty £70,000 stamp duty bill. Instead, she paid a considerably lower fee of £30,000. While she maintains that her property in Manchester remains her primary residence, she has designated the Hove flat as a second home for council tax purposes.

Controversy Surrounds Rayner’s Tax Arrangements

The circumstances surrounding Rayner’s property dealings have sparked considerable controversy. A spokesperson for the Deputy Prime Minister asserted that she “paid the correct duty owed on the purchase, entirely properly and in line with all relevant requirements,” emphasizing that any suggestions to the contrary are unfounded.

Changes are also being implemented regarding the Land Registry records for her constituency home in Ashton-under-Lyne. The official register currently notes that “applications are pending in HM Land Registry, which have not been completed against this title.” These applications are believed to have been submitted prior to Rayner acquiring the Hove property.

Rayner, who has been dubbed “Angela ‘Three Pads’ Rayner,” is also having taxpayers cover the council tax for her official flat at Admiralty House in London. This residence is classified as her “second home,” allowing the Cabinet Office to pay the £2,034 charge on her behalf. If Rayner had declared it as her main residence, she would have been responsible for the payment.

Under new rules introduced by the Labour Party in April 2023, ordinary second-home owners face a 100 percent premium on their council tax, effectively doubling their bills. However, this regulation does not apply to Admiralty House as it is an official residence.

Political Reactions and Ethical Questions

The situation has prompted strong reactions from political opponents. Kevin Hollinrake, chairman of the Conservative Party, accused the government of an “apparent cover-up” regarding these arrangements. He stated, “It is staggering hypocrisy for the Deputy Prime Minister to push punitive new taxes on family homes while apparently avoiding those same taxes herself.” Hollinrake raised concerns about the transparency of Rayner’s tax disclosures to Parliament, particularly in light of her latest property acquisition.

A spokesperson for the Labour Party defended Rayner, asserting that she takes her responsibilities seriously and pays the council tax owed. Sources close to Rayner have indicated that her living arrangements are necessitated by her role, which involves working across multiple locations. In contrast, both Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves reportedly pay full council tax on their residences at Downing Street.

In light of these developments, James Cleverly, Shadow Housing Secretary, criticized Rayner’s apparent inability to be transparent about her own tax affairs while advocating for ethical standards among others. He stated, “If she cannot be open about her own tax affairs while driving up everyone else’s, what credibility does she have left?”

This unfolding situation raises important questions about the ethical obligations of public officials and their financial dealings. As scrutiny continues, the public and Parliament alike will be watching closely to see how these issues develop in the coming weeks.