Angela Rayner, the UK’s Deputy Prime Minister, admitted on September 3, 2025, that she underpaid stamp duty by up to £40,000 on her £800,000 flat in Hove, East Sussex.
The revelation, tied to complex family trust arrangements for her disabled son, has ignited calls for her resignation from Conservatives and Reform UK.
Rayner referred herself to the Prime Minister’s ethics adviser and HMRC, but faces intense scrutiny over whether she dodged tax deliberately.
Keir Starmer stands by her, praising her transparency, yet the scandal threatens Labour’s early government stability.
This development captivates political watchers in Europe and the UK as of 10:45 AM IST today, Thursday, September 4, 2025.
The Tax Admission and Property Background
Rayner bought the Hove flat in May 2025 for £800,000, paying only the standard stamp duty rate of around £30,000 instead of the higher second-home rate of £70,000.
She claimed legal advice at the time suggested the flat was her sole property after selling her stake in the family home in Ashton-under-Lyne, Greater Manchester, to a trust in January 2025.
The trust, set up in 2020, manages NHS compensation for her son, who has lifelong disabilities from a premature birth complication.
Rayner sold her 25% share for £162,500, using the funds as a deposit for the Hove flat while taking a £650,000 mortgage.
Recent advice from leading tax counsel revealed “complex deeming provisions” in the trust meant she still owned the Ashton home for tax purposes, triggering the higher rate.
Rayner stated, “I deeply regret the error… I am committed to resolving this matter fully.”
She contacted HMRC to pay the shortfall and faces potential fines: £12,000 for carelessness or 100% of the tax if deliberate.
The Telegraph alleged she used the son’s NHS compensation via the trust for the second home, calling it “hypocritical tax avoidance.”
Rayner’s spokesperson clarified the trust bought her share legitimately, ensuring her son’s security in the family home.
Timeline of the Scandal
The row escalated in August 2025 when Rayner removed her name from the Ashton deeds weeks before the Hove purchase, raising questions about her primary residence.
She registered the Ashton home for council tax and electoral roll, where her children live and she spends much time post-divorce from Mark Rayner in 2023.
They “nest,” alternating stays while kids remain stable. Initial denials from ministers, including Starmer saying it was “all fine,” drew hypocrisy accusations, as Rayner once slammed Tory “one rule for them” scandals.
Pressure mounted after media reports, leading to her September 3 admission.
She consulted three experts on trusts and conveyancing but overlooked tax nuances.
Greater Manchester Police previously cleared her of 2015 council house sale issues (profit £48,500, no CGT due), but this new probe focuses on 2025 events.
Political Fallout and Calls for Resignation
Conservatives, led by Kemi Badenoch, demand Rayner’s sacking, with Mark Harper saying ministers defended her while she knew of the issue.
Reform UK’s Richard Tice called her a “hypocrite” for attacking opponents in opposition.
Nigel Farage tweeted demands for her resignation. Lib Dem Ed Davey offered sympathy, understanding family trusts for disabled children.
Starmer backed her at PMQs: “I am very proud to sit alongside her.” Technology Secretary Peter Kyle echoed, “She acted in good faith… mistakes were made, but she’s upfront.”
Allies fear scandals damage her PM prospects, but her left-wing appeal and grassroots support protect her.
The ethics adviser, Sir Laurie Magnus, fast-tracks the probe, potentially interviewing her soon.
A damning report could force Starmer’s hand, despite his ruthlessness with errant ministers like Nadhim Zahawi.
Broader Implications for Labour
The scandal hits Labour amid falling polls and freebies rows.
Rayner, a working-class icon from Stockport (left school at 16 pregnant, rose via Unison), embodies authenticity but attracts classist attacks.
It questions government transparency on taxes, ironic as the autumn budget eyes property hikes.
Supporters see it as a “smear,” but critics highlight her past accusations against Tories.
On X, outrage trends. One user posted, “Angela Rayner used disabled son’s NHS compensation for second home—hypocrisy!”
Another shared, “Rayner admits tax dodge—time to resign!”, fueling debate.
What’s Next?
Magnus’s report could conclude soon, deciding Rayner’s fate.
HMRC assesses the tax and fines. Labour faces scrutiny in reshuffles, with Rayner’s position key to left-wing unity.
Stay tuned for developments!