Angela Rayner faces mounting pressure as lawyers deny giving tax advice

Angela Rayner

The conveyancing firm that handled Angela Rayner’s £800,000 flat purchase on the south coast has stated it did not provide her with tax advice and completed her stamp duty return solely based on details she supplied.

Joanna Verrico, head of the small family-run firm in Kent, said on Thursday that no guidance was given to the deputy prime minister regarding the amount of stamp duty owed.

The issue of advice – or lack thereof – is central to questions surrounding Rayner’s alleged underpayment of up to £40,000 in tax. It is expected to be a key focus of the upcoming report by the prime minister’s ethics adviser, Laurie Magnus, which could be delivered later today.

The sources close to Rayner said she was given three separate pieces of legal advice before purchasing the flat at the centre of the row.

They said a conveyancer and two experts in trust law had all suggested the stamp duty she paid on the property was correct, and she acted on the advice she was given at the time.

“We acted for Ms Rayner when she purchased the flat in Hove. We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for”, Verrico said.

David Smith, a property litigation partner at the London law firm Spector Constant & Williams, weighed in with his perspective on the matter.

He commented: “Stamp Duty Land Tax is notoriously complex, particularly when the nuances of trusts and higher rate liabilities are involved. If Angela Rayner disclosed the full circumstances and was told by multiple advisers that no extra duty was due, then the error lies with the advice, not with her intent.

“The optics are difficult politically, but from a legal standpoint, the key point is that she has acknowledged the mistake, referred herself to the standards committee, and is working with HMRC to put things right.”

However, a former government ethics adviser told The Independent that while they did not believe Rayner intentionally attempted to avoid taxes, her position as housing secretary was now untenable.

“For her judgement, it does not look good to have thought she could get away with paying less tax,” the advisor tod the press. “You would have hoped and thought that your instinct as a Labour politician, who is also the housing minister, would be to – even if there was a modicum of doubt that you are technically liable for second home stamp duty – that you should just pay it.”

“I think that the most survivable version of this is that you’d end up with a reshuffle. It’s quite hard to imagine her carrying on doing housing and her standing up in the House and talking about second homes,” the advisor added.

 

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10 Comments

  1. Hendrix

    Surely any solicitor has a duty to clearly set out all costs, fees applicable to a property transaction coupled with the knowledge of their clients sale / purchasing concepts.

    Therefore unless red Angie can provide written evidence from the solicitor showing her completion statement stating otherwise then she is at fault & not the buck being passed to the solicitor.

    In addition in view of red Angies profile ie deputy PM, Housing Minister the solicitors would one assumes be on top form.

    Nonetheless personally I don’t trust this government & roll on Novembers budget…..

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  2. RentMasterFlex

    Enough is enough — Angela Rayner has to go.

    This isn’t just a “minor slip-up” — it’s the Deputy Prime Minister and Housing Secretary underpaying £40,000 in stamp duty on an £800,000 flat, while juggling multiple residences and exploiting trust loopholes. Legal advice or not, the optics are appalling, and the excuses are wearing thin. If she can’t navigate the very tax rules she oversees, how can she credibly lead housing reform?

    But Rayner’s scandal is just the tip of the iceberg. In barely a year, four other Labour ministers have resigned over misconduct:

    Rushanara Ali – accused of evicting tenants and hiking rent on her property.
    Tulip Siddiq – embroiled in a corruption probe linked to billions in Bangladesh.
    Andrew Gwynne – sacked after vile WhatsApp messages wishing constituents dead.
    Louise Haigh – resigned over a past fraud conviction.2
    Rayner would be the fifth to fall — and rightly so. The Labour Party promised integrity and transparency. Instead, we’ve seen hypocrisy, arrogance, and a blatant disregard for the rules they expect the rest of us to follow.

    If Starmer won’t act, the public will. Rayner’s position is untenable. She must resign.

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  3. Hit Man

    Before anyone gets overly sentimental and rushes to defend Angela’s actions, it’s important to remember that she has broken both ministerial rules and taxation laws. Some argue that property taxation and stamp duty are “complicated” and therefore offer her a defence. But they really aren’t—not for someone in her position. As Deputy Prime Minister, she not only understands the law but also has a duty to follow it to the letter.

    Her decision to deliberately transfer her family home into a trust, clearly intended to avoid paying stamp duty on her next purchase, shows that she knew exactly what she was doing. Advice or not, the responsibility rests with her. This isn’t a matter of confusion or oversight; it’s a calculated attempt to exploit the system for personal gain. She isn’t sorry for breaking the rules—she’s only sorry she’s been caught.

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  4. CountryLass

    How can she argue and write tax laws that she herself does not understand? To put it simply, if the MINISTER who writes these laws does not understand them, then the average person on the street surely has no chance, which means they are designed to be complicated so that the ones with means can find loopholes, and those of us without either have to pay, or if we get confused and make a genuine mistake, be prosecuted.

    That is not the sign of a fair and progressive country.

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  5. Rob Hailstone

    Joanna Verrico, told The Telegraph: “We acted for Ms Rayner when she purchased the flat in Hove. We did not and never have given tax or trust advice. It is something we always refer our clients to an accountant or tax expert for.

    The Stamp Duty for the Hove flat was calculated using HMRC’s own calculator based on the figures and information provided by Ms Rayner. That’s what we used, and it told us we had to pay £30,000.00 based on the information provided to us. We believe we did everything correctly and in good faith.”

    A spokesperson for the Council of Licensed Conveyancers said: “We have asked them for a full account of events. They are not licensed to provide tax advice. What they are licensed to do is provide conveyancing advice, and they are regulated to the highest standards.”

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  6. RetiredConveyancer

    The Licensed Conveyancer involved is 82 years old.. that’s dedication to the job!

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    1. AcornsRNuts

      It is a family firm and I doubt she still does actual conveyancing. However her website suggests that they do give tax advice, “Through our connections we can also offer advice on Wills, Probate and TAX PLANNING”.

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      1. CountryLass

        that’s through their connections though. Through my connections I can offer mortgage, conveyancing, gas, electricity and plumbing. Also, fishing, farming, football, gymnastics, teaching, insurance and jiu-jitsu.

        I know a little about many of those, but I have friends/contractors who know more.

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  7. TDGC

    And it seems that pressure has now been applied

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    1. AcornsRNuts

      But the report says she acted with integrity. Does anyone outside the Labour Party believe that?

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