Former Deputy Prime Minister Angela Rayner has been cleared by HM Revenue and Customs (HMRC) of deliberate wrongdoing or carelessness over her tax affairs, according to The Guardian. This clears the way for a potential leadership bid as Keir Starmer's grip on power weakens.
Key Takeaways
Former Deputy Prime Minister Angela Rayner has been cleared by HM Revenue and Customs (HMRC) of deliberate wrongdoing or carelessness over her tax affairs, according to The Guardian. This clears the way for a potential leadership bid as Keir Starmer's grip on power weakens.
- HMRC found no deliberate wrongdoing but confirmed Rayner owed an additional £40,000 in stamp duty.
- Rayner has accepted HMRC's assessment and will pay the extra amount.
- Political rivals question how quickly the probe was closed and call for more transparency.
- Allies of Health Secretary Wes Streeting expect him to challenge Sir Keir for the Labour leadership soon.
Rayner initially paid £30,000 in stamp duty when she bought a flat in Hove with her partner in April 2025. However, it emerged that due to complex arrangements surrounding a trust for her disabled son, the flat should have been considered as her second home, meaning she was liable for an additional £40,000.
Rayner's lawyer stated that HMRC has been satisfied throughout its inquiry that she did not engage in deliberate tax avoidance. However, authorities were looking at two questions: whether she should have paid the higher rate of stamp duty and if she was 'careless' in arranging her tax affairs. HMRC found no carelessness but confirmed she owed the additional £40,000.
Rayner has accepted HMRC's assessment and will pay the extra amount. She is now free to play a full role in any leadership challenge to Keir Starmer. Meanwhile, allies of Health Secretary Wes Streeting expect him to challenge Sir Keir for the Labour leadership soon.
The Daily Mail reports that Rayner faced calls to prove she has been 'cleared' by the taxman just in time to join the Labour leadership race. Political rivals and experts questioned how HMRC concluded she had not been careless, given she did not obtain specialist tax advice on the complex transaction involving a trust for her disabled son. Questions were also raised about how quickly the probe was closed.
Shadow Cabinet Office minister Alex Burghart said: 'Angela Rayner's carefully worded statement cannot disguise the fact that she has still had to settle up an unpaid tax bill of £40,000.' He added, 'Only Angela Rayner seems to be able to say that this is now settled with HMRC. She still has serious questions to answer.'
Andrew Marr, managing partner at specialist tax firm Forbes Dawson, said: 'This situation is certain to irk those less fortunate than Rayner. HMRC is notoriously hardline when it comes to penalties, especially on stamp duty... Whether HMRC has acted fairly in this instance is questionable.' Dan Neidle of Tax Policy Associates described the outcome as 'surprising' and called for more openness from Rayner.
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