HMRC has officially closed its investigation into Angela Rayner’s unpaid tax bill, just 24 hours after her legal team demanded a definitive decision. The former deputy prime minister has paid the £40,000 in stamp duty she owed on an £800,000 holiday home in East Sussex. This development effectively clears her path to return to frontline politics and potentially challenge the leadership of the Labour Party.
The timing of the settlement has sent shockwaves through Westminster.
Following a string of disappointing local election results for Labour, pressure has been mounting on Sir Keir Starmer to consider his position. Rayner’s lawyers reportedly wrote to HMRC on Monday, requesting the case be concluded as soon as possible. By Tuesday, tax officials informed her that no further action would be taken, a move that opponents have characterized as a "sweetheart deal."
The controversy stems from the purchase of a property in Hove, where Rayner had initially paid £30,000 in stamp duty instead of the required £70,000. She was forced to resign as deputy prime minister and housing secretary in September after an ethics watchdog found she had breached the ministerial code. Rayner apologized for her failure to seek specialist tax advice at the time but maintained she acted in good faith throughout the process.
Conservative MPs have been quick to criticize the rapid resolution of the case. Shadow chancellor of the Duchy of Lancaster, Alex Burghart, suggested that the payment was a matter of political expediency rather than integrity. He questioned how Rayner could manage the country if she struggled to keep her personal financial affairs in order. Tax experts also voiced surprise that no "carelessness" penalty was applied, noting that ordinary taxpayers often face fines in similar circumstances.
Rayner’s new legal representative, Graham Aaronson KC, argued that the closure was not a coincidence. He had previously advised her that she had a realistic chance of winning the case in court. However, a lengthy legal battle would have likely scuppered any immediate hopes of a political comeback. By choosing to pay the settlement now, Rayner has removed a significant obstacle to her ambitions within the party.
In a recent interview, Rayner suggested that Prime Minister Keir Starmer should "reflect on" his future leadership. Her exoneration by HMRC provides her with the necessary leverage to position herself as a strong alternative for the party`s future. While HMRC stated it cannot comment on individual cases, the political fallout from this decision is expected to dominate the coming weeks.
Rayner continues to insist that she has always sought to act with integrity. With the tax saga now behind her, the focus shifts to whether she will mount a formal challenge for the top job.
