Angela Rayner, the Deputy Prime Minister of the United Kingdom, has come under fire over allegations of tax fraud after admitting that she underpaid stamp duty on her £800,000 (Rs 9.45 crore) seaside flat. The admission came after intense pressure for greater transparency about her property arrangements.
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After the matter went public, Rayner referred herself to the Prime Minister’s ethics adviser. She admitted to paying a lower rate of stamp duty on her flat in Hove. According to experts, her bill could rise to as much as £40,000 (Rs 4,727,116).
The confirmation of her underpayment has placed Rayner in a politically sensitive position. Labour is already trailing behind Reform UK in the polls, and with the government expected to increase taxes on property owners, the controversy leaves both Rayner and her party vulnerable.
In a statement to The Guardian, Rayner said she deeply regretted the error that occurred when she classified the flat as her only property, despite spending much of her time with her children at the family home in Ashton-under-Lyne, Greater Manchester.
Prime Minister Keir Starmer has defended her, saying he was proud to have her on the Commons frontbench. He also praised her decision to refer herself to the ethics adviser, calling it the right step. “She has explained her personal circumstances in detail,” Starmer said. “She has gone over and above in setting out the details, including asking the 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, but she did it to ensure that all information is in the public domain.”
Rayner’s position appears secure for now, pending the outcome of the ethics adviser Laurie Magnus’s review into whether she breached the ministerial code. However, Starmer has faced criticism from Tory leader Kemi Badenoch, who said: “If he had a backbone he would sack her.”
According to The Guardian, before purchasing the Hove flat in May 2025, Rayner placed her stake in the Ashton property into a trust to manage payments for one of her sons, who was left with lifelong disabilities after being born prematurely. She explained that lawyers had advised her on stamp duty requirements at the time.
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Tax experts, however, say that the flat could not be treated as her only residence because of the trust arrangement.
Although Rayner gave up her financial stake in the Ashton property following her divorce, she and her children continued to occupy it, meaning she would still be regarded as an owner. As the Hove flat qualified as an additional dwelling, she should have paid the higher stamp duty rate of £70,000 (Rs 82,73,111), rather than the £30,000 (Rs 35,45,619) she actually paid.
She is now working with HM Revenue and Customs to determine the exact amount due. Regardless of ownership status, the Ashton house remains her family home. It is where her children live full-time and where Rayner is registered for official and financial purposes, including council tax and the electoral roll. She and her former husband take turns living in the house and caring for their children.
Downing Street confirmed on Monday that Rayner had been prevented from disclosing all details about her property arrangements because of a court order. In the interest of transparency, she sought permission from the court and was allowed to make the details public on Tuesday night.