Deputy Prime Minister and Housing Secretary, Angela Rayner, has referred herself to the parliamentary watchdog after she admitted she did not pay enough Stamp Duty on her £800,000 seaside flat in Hove.
She said the tax advice she received at the time was incorrect and that she should have paid Duty at a higher rate which could be as much as an additional £40,000.
Rayner has faced mounting media speculation over the property transaction in recent days.
Yesterday during Prime Minister’s Questions, Conservative leader Kemi Badenoch called for her to be sacked but Prime Minister Keir Starmer said he was “very proud” to sit alongside her.
In her statement, Rayner said: “When purchasing the property my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.
“However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions.
Did not pay appropriate Stamp Duty
“I have now been advised that although I did not own any other property at the time of the purchase, the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities.
“I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.”
She added: “The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce and the complexities of ensuring your children’s long-term security. Every decision I have made has been guided by what I believe to be in my children’s best interests.
“I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands. It is for that reason I have today referred myself to the independent adviser on ministerial standards, and will provide him with my fullest cooperation and access to all the information he requires.”
Budget date set
Ironically just hours earlier, the Chancellor of the Exchequer, Rachel Reeves set the date for the forthcoming Autumn Budget – Wednesday, 26th November.
The announcement comes after weeks of speculation and rumour that she is planning a tax raid on property transactions and rental income.
And the date she has chosen in late November allows more time for the speculation to spread and the uncertainty to continue affecting the housing market. Last year’s Autumn Budget statement was on October 30th – almost a month earlier.
Leading wealth managers, Rathbones, said it had seen a surge in queries on whether it remains worthwhile to hold on to Buy To Let Properties, pension taxation and estate planning.
This article is taken from Landlord Today