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| Date | 28 August 2025 (2025-08-28) – 5 September 2025 (2025-09-05) |
|---|---|
| Duration | 8 days |
| Location | United Kingdom |
| Also known as | Angela Rayner stamp duty controversy, Three homes controversy |
| Cause | £40,000 underpayment ofstamp duty onHove property purchase |
| Target | Angela Rayner,Deputy Prime Minister of the United Kingdom |
| First reporter | The Telegraph |
| Outcome | Resignation ofAngela Rayner from all government posts and Labour Party deputy leadership |
| Inquiries | Investigation bySir Laurie Magnus, independent adviser on ministerial standards |
| Publication bans | Court order preventing disclosure of son's trust details (lifted 2 September 2025) |
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|---|---|---|
Shadow cabinet positions (2016–2024)
Deputy Leader of theLabour Party (2020–2025) Deputy Prime Minister (2024–2025)
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A political controversy emerged in the United Kingdom in August 2025 when it was revealed thatDeputy Prime MinisterAngela Rayner had underpaidstamp duty by £40,000 on an £800,000 flat inHove purchased in May 2025. The controversy centred on complex property arrangements involving a trust for her disabled son and conflicting declarations about her primary residence to different authorities.[1]
The scandal unfolded over eight days from 28 August to 5 September 2025. Following media scrutiny, Rayner admitted the error on 3 September 2025 and referred herself to the Prime Minister's independent adviser on ministerial standards.[2] After the ethics adviser found she had not met the "highest possible standards of proper conduct", Rayner resigned from all her posts on 5 September 2025.[3] Her resignation was widely described as a significant blow to theStarmer ministry and triggered the2025 British cabinet reshuffle.[4]
Rayner, who served until her resignation as both Deputy Prime Minister andSecretary of State for Housing, Communities and Local Government, has maintained multiple residences in her official roles. These include her constituency home inAshton-under-Lyne, a grace-and-favour flat atAdmiralty House in central London, and the Hove property purchased in May 2025.[1]
The scandal emerged during a period when theLabour government was preparing potential tax increases on property owners as part of efforts to address public finances, making Rayner's tax arrangements particularly politically sensitive.[5]
Rayner's constituency home inAshton-under-Lyne was originally co-owned with her former husband following their divorce in 2023. Described as a "nesting" arrangement, the residence, which has undergone some modification to allow for easier every day living for their disabled child, is where their children live full-time, while both parents can take turns living at the house and caring for them. In January 2025, Rayner sold her remaining interest in the property to a trust established for her son, who has lifelong disabilities.[6] The trust arrangement was reportedly set up following a court order to provide for her son after an injury. The legal basis for the sale of the 25% share in the property to the trust is unclear. According to documents filed with HM Land Registry, no sale or transfer of that property can take place unless it is in accordance with the terms of the trust, as warranted by a statutory declaration or statement of truth made by the trustee.[7] Rayner's September 2025 statement did not address the sale in the context of therule against self-dealing, whichprima facie prohibits transactions between a trustee acting in a personal capacity and a trustee acting on behalf of a trust.[8] Questions have also been raised regarding the price paid, with reports that Rayner's 25% ownership interest may have been overvalued, based on prices paid for surrounding properties.[9]
Despite selling her legal interest to the trust, Rayner continued to declare the Ashton-under-Lyne property as her primary residence forcouncil tax, electoral roll and other purposes withTameside Council.[6] This arrangement allowed her to avoid paying council tax on her London grace-and-favour flat, as it was not considered her main residence.[10]
In May 2025, Rayner purchased an £800,000 seafront flat inHove,East Sussex, having obtained a mortgage and in part, using the proceeds from the sale of her remaining stake in the Ashton-under-Lyne property to her son's trust. She said she had been advised by both an individual experienced in conveyancing and 2 specialists in trust law, at the time of purchase that she was liable only for the standard rate of stamp duty (£30,000) rather than the higher rate applicable to second homes (£70,000), as she owned no other property following the trust arrangement.[6][11]
However, the flat was registered withBrighton and Hove Council as a second home for council tax purposes, creating what critics described as an inconsistent classification of her residences across different tax systems.[12] The conveyancing firm involved - Verrico & Associates has said it did not provide advice and had been made "scapegoats" in the political row.[13]
The scandal first became public on 28 August 2025, whenThe Telegraph reported that Rayner had removed her name from the deeds of her constituency residence weeks before purchasing the Hove flat, potentially reducing her stamp duty liability by £40,000.[1]
The allegations suggested that whilst Rayner had legally structured her property arrangements to minimise tax liability, the timing of the trust arrangement in relation to the Hove purchase raised questions about tax avoidance. Critics pointed to the apparent contradiction between her declarations to different councils about which property constituted her primary residence.[14]
On 3 September 2025,The Telegraph alleged that Rayner had used NHS compensation money from a trust set up to care for her disabled son to purchase her Hove apartment, having sold a 25 per cent share of her house in Ashton-under-Lyne to his trust for £162,500 in January 2025.[15]
On 4 September 2025, theconveyancing firm who handled the purchase of Rayner's flat in Hove, Verrico & Associates, stated that they did not give Rayner tax or trust advice, and that they always direct their clients to accountants or tax experts for such matters.[16] Verrico say that "the stamp duty for the Hove flat was calculated using HMRC's own online calculator based on the figures and the information provided by Ms Rayner".[16] Managing director Joanna Verrico stated "we are probably being made scapegoats for all this and I have got the arrows stuck in my back to show it".[16]
Conservative Party chairmanKevin Hollinrake wrote to the Prime Minister's independent adviser on ministerial standards requesting an investigation into whether Rayner had breached theMinisterial Code. Hollinrake characterised the arrangement as "hypocritical tax avoidance", arguing that it was inappropriate for a minister who supported higher taxes on family homes to seek to minimise her own tax liability.[17][18]
The Conservatives also initiated legal processes to challenge Rayner's electoral registration in Ashton-under-Lyne, saying she did not meet the legal tests for residency there. They argued that if successful, this would make her liable for council tax on her London flat, potentially costing an additional £2,000 annually with the second-home premium.[10]
Conservative leaderKemi Badenoch called for Rayner's dismissal, stating: "If Keir Starmer had a backbone, he'd sack Angela Rayner immediately. She has to go."[19]
Initially, both Rayner's spokesperson and Health MinisterStephen Kinnock defended her actions, stating she had paid the "relevant duty" in line with the rules and "entirely properly". Kinnock said Rayner had done "absolutely nothing wrong" and had "complied with the letter of the law".[20]
On 3 September 2025 prime ministerKeir Starmer backed Rayner after her admission, stating he was "very proud to sit alongside" his deputy and praising her transparency in referring herself to the ethics adviser.[21]
On 3 September 2025,Peter Kyle defended Rayner, stating: "Just because it is Angela, with her accent and her background, people are treating her in a way they wouldn't, that if a Tory MP who was born in wealth had a second home, which many of them do already".[22]
On 4 September 2025,Rachel Reeves said that she had "full confidence" in Rayner.[23] Later that day, the BBC reported that Keir Starmer had repeatedly refused to say whether he would dismiss Rayner if his standards adviser concluded she had breached the ministerial code, stating he would "of course act" on the adviser’s report once published.[24]
On 3 September 2025,Reform UK Deputy LeaderRichard Tice called for Rayner's resignation, describing her as "the biggest hypocrite in the land" for her criticism of opposing politicians whilst in opposition.[25] In contrast,Liberal Democrat leaderEd Davey expressed understanding for Rayner's situation, stating that he trusted she was acting in her family's interests and that it was not the Liberal Democrats' role to call for resignations unless the ethics advisor found a rules breach.[26]
On 3 September 2025, Rayner admitted she had underpaid stamp duty on the Hove property. In a statement and interview withSky News, she revealed that a court order preventing her from disclosing information about her son's trust had been lifted the previous evening, allowing her to speak publicly about the arrangements.[27]
Rayner stated: "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." She said that she had subsequently sought further advice from a leading tax counsel following media scrutiny and learned that "the application of complex deeming provisions which relate to my son's trust gives rise to additional stamp duty liabilities."[6] Tax experts explained that even if you own no other property, a deeming rule can apply if there is a trust in favour of children under the age of 18 such that each parent is deemed to own that property for stamp duty purposes.[11][28]
She described herself as "devastated" by the error and said she had considered resigning to protect her disabled son from public scrutiny, stating: "I acted in good faith but recognise that the incorrect duty was paid, and I have now taken steps to resolve this."[29]
Rayner referred herself toSir Laurie Magnus, the Prime Minister's independent adviser on ministerial interests, for investigation. She stated she would cooperate fully with the investigation and was working with expert lawyers andHM Revenue and Customs (HMRC) to resolve the matter and pay what was due.[26]
The referral marked a significant escalation of the scandal, as investigations by the independent adviser can result in findings that a minister has breached the Ministerial Code, potentially leading to resignation or dismissal.[5]
On 5 September 2025, following the publication of Sir Laurie Magnus’s report which concluded that she had not met the "highest possible standards of proper conduct", Rayner announced her resignation from government and as Deputy Leader of the Labour Party. In her resignation letter to Prime Minister Sir Keir Starmer, she wrote that she "did not meet the highest standards" and expressed "deep regret" for failing to seek specialist tax advice given her position as Housing Secretary and the complexity of her family arrangements.[3] She said she took "full responsibility for this error" but insisted it had "never been [her] intention to do anything other than pay the right amount".[2]
In his reply, Starmer described her decision as "very painful" but "the right one", praising her contribution to Labour’s 2024 general election victory and her work in government. He said she remained a "major figure" in the party.[21]
Her resignation prompted a significant cabinet reshuffle.David Lammy was appointed Deputy Prime Minister and Justice Secretary, withShabana Mahmood moving to the Home Office andYvette Cooper becoming Foreign Secretary.Steve Reed was promoted to Housing Secretary.[30]
Rayner’s departure was widely described as a blow to Starmer’s authority, with commentators suggesting that the forthcoming Labour deputy leadership election could reopen divisions within the party.[31]
Losing his deputy is particularly damaging, especially as Rayner, who rose from a working-class teenage mother to one of Britain's highest political positions, had been able to mediate between Labour's left and centrist wings to keep the party united, and had a wider appeal than Starmer.
But Ms Rayner's departure is by far the most damaging, particularly because she was in such a powerful position in the party.
Include any residential property that: is owned on behalf of children under the age of 18 (parents are treated as the owners even if the property is held through a trust
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