The Telegraph is reporting that the Deputy Prime Minister Angela Rayner is facing intense scrutiny over her property transactions, with accusations that she has “deliberately conducted her property affairs to pay less stamp duty and council tax.”
The article can be read here (subscription may be necessary) and states that the controversy centres on her recent purchase of an £800,000 seaside flat in Hove, East Sussex. By telling tax authorities that the flat was her main home, she is understood to have paid £30,000 in stamp duty, a saving of £40,000. This move came just weeks after she reportedly removed her name from the deeds of her house in Greater Manchester. Had the Hove flat been her second home, she would have faced a stamp duty bill of £70,000, which includes a surcharge on second properties.
The situation is further complicated by conflicting declarations for council tax purposes. While the Hove flat was designated as her main home for stamp duty, Ms. Rayner has informed Tameside council that her constituency house remains her primary residence. This designation is critical, as it allows her to avoid paying council tax on her ministerial flat in Admiralty House, London, where the bill is covered by the taxpayer.
While her spokesperson has stated that she paid the “correct duty owed” and has denied any wrongdoing, the revelations have sparked a political firestorm. The Conservatives have accused her of “hypocritical tax avoidance” and have initiated a legal challenge to her electoral registration in her constituency, arguing she is not habitually residing there. A successful challenge could make her personally liable for the council tax on her London flat.
The controversy has also raised questions within the Labour party about public trust, with one MP suggesting her actions “really don’t look good” and create a sense of resentment among ordinary people who don’t have such options available to them.
The allegations come at a difficult time for the government and highlight the complex and sometimes contradictory nature of property and tax laws for individuals with multiple residences.
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