Angela Rayner tax advisers question stamp duty saving on Hove flat purchase

Questions persist over the deputy prime minister Angela Rayner’s property deals, as tax specialists scrutinise whether she was right to claim a £40000 stamp duty reduction on the £800000 flat she bought in Hove earlier this summer. The purchase came just weeks after Rayner moved her equity in her AshtonunderLyne constituency home into a trust managed by a law firm reportedly for the benefit of her children.

With Rayner’s children under eighteen, advisers say the structure of the trust is critical. If it is the type where a minor child is given a right to live in the house – known as an interest in possession trust – tax law typically considers the parent as still owning an interest in the property. Under these circumstances, the flat in Hove would be classed as her second home, making the higher rate of stamp duty payable rather than the lower one claimed.

Rayner’s office insists she paid the stamp duty required and denies any wrongdoing. Allies state her divorce settlement relinquished ownership of the Ashton property, and although she visits regularly, it is no longer her primary home. An application to alter the Land Registry deeds was reportedly made, yet according to officials, evidence that she was removed from the title is not conclusive.

On council tax, Rayner has designated the Ashton home as her primary residence, reducing her liability on the governmentprovided Admiralty House flat, which she uses in her official capacity. In correspondence with Brighton and Hove council, the Hove flat was declared as her second home for council tax, while for stamp duty, she stated it was the only one she owned at the time of the transaction.

Political criticism has centred on transparency and the coincidence of the AshtonunderLyne house being valued precisely at the £650000 inheritance tax threshold when the trust was created. Tax advisers note such timing as remarkable, though there is no suggestion of illegality, only scrutiny over the ethical judgement of a highprofile public official.

Labour MPs and Downing Street have reiterated their support for Rayner, with the prime minister’s spokesperson pointing to a court order restricting further disclosure of her property affairs. Sir Keir Starmer has publicly praised Rayner’s journey and contribution to the government while calling for those briefing against her to stop. With Rayner also serving as housing secretary, calls for clarity are likely to continue as the specifics of her arrangements attract significant public interest.