Angela Rayner and the Stamp Duty Story: What It Means for You

What’s Happened

Deputy Prime Minister Angela Rayner is in hot water after admitting she underpaid around £40,000 in stamp duty when buying a flat in Hove earlier this year.

She paid £30,000, when experts now say she may have actually owed closer to £70,000 because of rules around second homes.

Why People Are Talking About It

Stamp duty is something millions of homeowners have to deal with, so when a senior politician gets it wrong, it naturally raises eyebrows.

It’s also politically awkward. Rayner has often spoken about making sure people pay their fair share of tax, so opponents have jumped on this as a case of “practice what you preach.”

Where the Confusion Came From

Rayner sold her share in her family home in Greater Manchester earlier this year by putting it into a trust for her son.

Her lawyers told her that meant the new Hove flat should be treated as her main home, so she only had to pay the standard stamp duty rate.

But tax experts now say that because she may still benefit from the trust property in some way, HMRC could view the Hove purchase as a second home - and that’s where the higher surcharge kicks in.

Up until last year, that surcharge was 3%, but from 31 October 2024 it increased to 5% on top of the normal SDLT rates.

That’s the difference between a £30,000 bill and a £70,000 one.

How She’s Responded

To her credit, Rayner hasn’t tried to brush this under the carpet.

• She’s already reported herself to HMRC and said she’s happy to pay back any money owed (plus penalties if needed).
• She’s also referred herself to the government’s ethics adviser, saying she wants to be totally transparent.

Prime Minister Keir Starmer is backing her, while Conservative leader Kemi Badenoch is calling for her to go. So, it’s not just about tax - it’s about politics too.

Why It Matters Beyond Politics

Here’s the real takeaway:

• Stamp duty rules are complicated. Trusts, second homes, and “main residence” definitions can all trip people up.
• Getting advice doesn’t guarantee HMRC will agree. Even when lawyers are involved, things can be challenged later.
• Anyone can make mistakes. This case shows that even high-profile people with professional advice aren’t immune.

What’s Next

• HMRC will decide whether she really underpaid and, if so, how much she needs to repay.
• The ethics investigation will decide whether she stays in her government role.
• Meanwhile, this has kicked off fresh debate about whether the stamp duty system itself needs reform - especially with talk of new property taxes on the horizon.

At SCA Tax, we see this sort of thing all the time: people pay too much or too little stamp duty without realising it, often because the rules are so tangled.

Angela Rayner’s case is a reminder that:

• Trusts and property transfers can create unexpected tax traps.
• HMRC will always have the final say, no matter what advice you were given.
• And most importantly - it’s always worth checking your position if you’re buying, selling, or transferring property.