TEARFUL Angela Rayner today finally admitted underpaying tax on her second home – leaving her political career hanging by a thread.
The Deputy PM has referred herself to the No10 sleaze watchdog and revealed she considered quitting amid the scandal.
Tearful Angela Rayner admits she has not paid enough tax
AlamyAngela Rayner at Cabinet yesterday[/caption]
Ms Rayner admitted not paying enough stamp duty – but says the expert advice she recieved was inaccurate because of confusion over her son’s trust.
Sir Keir Starmer‘s right-hand woman now faces a hefty stamp duty bill on her new £800,000 seaside home in Hove.
And her political career hangs in the balance if ethics adviser Sir Laurie Magnus finds she breached the ministerial code.
After days being tight-lipped over the row, Ms Rayner finally opened up on her tax affairs in an emotionally-charged interview.
She was asked about accusations she dodged a £40,000 tax bill on her new flat in Hove.
And said she could explain it clearer after a court order was lifted last night.
Ms Rayner told Sky: “I made a mistake based upon the advice that I relied upon that I received at the time, and a leading expert has now said that advice was wrong.
“I think hopefully most people can see, if you take, if you rely on advice given to you by lawyers and you follow that process and then you find out that that process is wrong and that advice is wrong, I’m rectifying it at the earliest opportunity.
“People make mistakes, but I conducted myself in trying to do the right thing, and I hope that people can see that.”
She came under fire after The Sun on Sunday revealed she bought an £800k flat on the south coast.
While also having access to a grace and favour property Admiralty House in central London and her constituency home of Ashton-under-Lyne.
It emerged that Ms Rayner saved £40,000 in stamp duty by telling tax authorities it was her main home.
Ms Rayner said in 2020 her disabled son had an award and a trust set up by a court to deal with his finances – with a legal trustee.
When she and her husband divorced the decision was made for the trust to take over the property which was adapted for his needs. That she said remains their family home.
She said: “So when I’m looking after the children, I go back to the family home. And then when my ex-husband is looking after children, he does.”
She said when she went to buy her own flat she took her life savings to buy the new flat in Hove.
“I relied on that legal advice that I received that said that I was liable to pay the standard stamp duty,” she said.
However, she said after the media exposed her property situation she sought fresh legal advice which said the previous advice was “inaccurate because of the trust”.
She admitted: “I don’t own the property. That is true. I only own one property that is mortgage like most people.”
Ms Rayner admitted that because of that trust she was liable to pay the extra £40k stamp duty.
STAMP DUTY FEARS
A levy on stamp duty for those owning a second-home was brought in by the Tories in 2016 and then raised by Rachel Reeves at last year’s Budget to raise cash.
Fears are now growing that the Chancellor could slap a new tax on people’s homes to replace stamp duty and council tax.
She is studying plans for a levy on houses worth over £500,000, according to reports.
The shake-up could pave the way for a new local levy to replace council tax, which is still based on 1990s property values.
Adding: “As soon as I knew that that was the case, I have alerted and referred myself to the independent adviser on the ministerial code to ensure that they can look transparently at what has happened, and also contacted HMRC to say that, there is additional tax owing on this, and that I’m prepared to pay that and fully comply with the HMRC as well.”
Pressed on accusations she did not pay the correct stamp duty, she admitted: “They are accurate. Yes.”
The questions surrounded over how much stamp duty she paid on the new property, where she had registered her main home and how much council tax she paid.
The Tories have been demanding she is investigated by independent ethics adviser Sir Laurie Magnus over her property in Hove, East Sussex.
Ms Rayner, also Housing Secretary, is understood to have saved £40,000 in stamp duty after removing her name from the deeds of a family property in her constituency of Ashton-under-Lyne, Greater Manchester.
It was also reported that remains her primary residence, which saves £2,000 in council tax on her central London grace-and-favour pad.
She also split the ownership of her £650,000 constituency home, placing it in a trust administered by law firm Shoosmiths.
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