Angela Rayner admits tax error and considers resignation over second home controversy

Angela Rayner, MP for Ashton-under-Lyne and Deputy Prime Minister, has admitted she did not pay the correct amount of tax on a second home and revealed she considered resigning over the issue.

In a frank and emotional interview this week, Ms Rayner said she has referred herself to the independent adviser on ministerial standards and pledged to pay any outstanding stamp duty owed on her £800,000 seaside property in Hove, East Sussex.

The Housing Secretary, who has represented Ashton-under-Lyne since 2015, acknowledged that legal advice she had relied on was incorrect and confirmed she would cooperate fully with HMRC and any ethics investigation.

“I made a mistake based upon the advice that I received at the time,” Ms Rayner told Sky News. “A leading expert has now said that advice was wrong. People make mistakes, but I conducted myself in trying to do the right thing, and I hope that people can see that.”

The controversy centres around Ms Rayner’s decision to remove her name from the deeds of a family home in Ashton, a move that meant she was not liable to pay the higher rate of stamp duty typically applied to second properties when purchasing the Hove flat. Reports have suggested this saved her up to £40,000.

Ms Rayner denied accusations of deliberately avoiding tax, saying a trust arrangement linked to the Ashton home was not set up for that purpose and that legal advice at the time failed to identify the implications.

“They are accurate in a different sense,” she said when asked about the stamp duty concerns. “The leading tax counsel who has subsequently looked at it said that, actually, because of that, it did remain my sole property… the trust wasn't set up to dodge tax.”

The Labour frontbencher revealed the situation had taken an emotional toll and that she had spoken to her family and ex-husband about the possibility of stepping down.

“I spoke to my family about it. I spoke to my ex-husband, who has been incredibly supportive because he knows that all I've done is try and support my family and help them.”

The Tories have called for a formal ethics inquiry into the case, but Prime Minister Keir Starmer has publicly stood by his deputy. Describing her as a “great story of British success,” Mr Starmer said critics were making a “mistake” in talking her down.

“Angela came from a very humble background, battled all sorts of challenges along the way, and there she is - proudly, and I’m proud of her - as our Deputy Prime Minister,” he said.

A court order relating to Ms Rayner’s divorce and family life had previously prevented her from speaking fully about her living arrangements. That order was lifted this week, allowing her to provide further detail.

“It’s been quite a distressing time for my family,” she said. “I wasn’t able to give a full account of the circumstances of our complex living arrangements. That order was lifted last night.”