The recent resignation of Angela Rayner, former Deputy Prime Minister, over a stamp duty underpayment has captured the attention of both the political and financial worlds. While the media have focused on the political fallout, for those of us in the world of tax, this situation serves as a very public reminder of the complexity of UK property taxes and the dangers of getting it wrong.

In this article, we’ll break down what happened, where it went wrong, and how this unfortunate episode highlights the value of getting specialist tax advice. It’s a cautionary tale for anyone buying property, particularly when trusts, multiple residences, or complex family arrangements are involved.

The Background: An £800,000 Flat and a Costly Oversight

In May 2025, Angela Rayner purchased a flat in Hove for around £800,000. Like many people buying a property, she relied on her solicitor to handle the necessary paperwork, including the stamp duty land tax (SDLT) calculation and payment.

Her solicitor applied the standard rate of SDLT, resulting in a tax bill of approximately £30,000. However, because of the way UK stamp duty rules work, this should have been charged at the higher “additional property” rate, adding roughly £40,000 to her tax bill.

So, what went wrong?

Rayner had previously transferred her family home into a trust for the benefit of her disabled son. While she no longer “owned” that property in the everyday sense, for SDLT purposes it was still considered a property interest linked to her. The crucial detail is that SDLT rules look at beneficial ownership in a very specific way. Even though the property was held in a trust, it was enough to trigger the higher rate because HMRC considers trust arrangements carefully when determining whether a purchase counts as an “additional” property.

Unfortunately, the solicitor, who is not a tax specialist, apparently did not recognise that nuance. Instead, they proceeded as if this was Rayner’s main residence and therefore taxed at the lower rate.

This meant that a £40,000 underpayment sat unnoticed until journalists uncovered it months later. By then, the political damage was irreversible.

The Ministerial Code and Why It Mattered

In politics, perception matters as much as the facts. Sir Laurie Magnus, the Prime Minister’s independent adviser on ministerial standards, investigated the case. His conclusion was that while Angela Rayner acted in good faith, she had nevertheless failed to uphold the “highest possible standards” required of ministers.

That conclusion was enough to compel her resignation. She stepped down from all of her senior government roles, a career-altering outcome caused by a technical but significant tax oversight.

For the average property buyer, there would be no public scandal, but the consequences would still be serious. HMRC will almost certainly pursue the unpaid tax, interest, and possibly penalties, which in Rayner’s case could total tens of thousands of pounds beyond the original liability. For anyone else, the financial sting could be equally severe, especially as HMRC penalties often depend on whether errors are deemed “careless” or “deliberate.”

What Does this Teach Us?

This episode underscores a common but risky assumption: that a property solicitor will handle all aspects of a transaction’s tax implications. In reality, most conveyancing solicitors are focused on the legal transfer of property, not the intricacies of tax law.

Stamp duty land tax, especially in situations involving trusts, multiple properties, or changing main residences, can be highly technical. The difference between one interpretation and another can mean tens of thousands of pounds in liability, or worse, a future legal or regulatory issue.

Angela Rayner trusted her solicitor, but her solicitor, unfortunately, got it wrong. From a purely practical perspective, what she needed was an accountant or tax adviser with experience in SDLT, someone who could assess the transaction in the context of her broader personal and family circumstances, ask the right questions, and make sure the correct rate was applied from the outset.

The Bigger Picture: Complexity Creates Risk

UK property tax is notoriously complex, with layers of legislation, exceptions, and interacting rules. From the additional property surcharge to reliefs for first-time buyers, mixed-use properties, and inheritance tax implications, each layer increases the risk of error.

As accountants, we see this every day. Transactions that look straightforward on the surface often have hidden complexity. Trusts, family transfers, and multiple properties each introduce special rules and tests. Failing to account for them can leave individuals exposed to unexpected bills, penalties, and, in some cases, public embarrassment.

The Rayner case is unusual because it became political. But at its core, it’s the same kind of tax problem we see regularly. A well-meaning client, acting on incomplete advice, ends up with a large tax exposure that could have been prevented with early specialist input.

Protect Yourself: Get the Right Advice at the Right Time

If there is one lesson from this saga, it is this: when it comes to property and tax, assumptions are expensive.

Before buying or transferring property – particularly if you:

  • Already own another property (even via a trust)
  • Are gifting or receiving property within a family arrangement
  • Are dealing with mixed-use properties or complex leases
  • Have overseas property interests or trusts

You should consult an accountant or tax adviser with relevant expertise. We can help you:

  • Identify the correct SDLT treatment before you sign contracts
  • Calculate liabilities accurately and plan cash flow accordingly
  • Avoid penalties, interest, and HMRC investigations later on
  • Integrate property decisions into your broader financial plan, including inheritance and capital gains considerations

Angela Rayner’s experience was a high-profile example, but the underlying issue is common and preventable. A little proactive tax advice can save far more than it costs. Not just in pounds and pence, but in stress, reputational risk, and peace of mind.

Summary

If you are considering buying, selling, or transferring property, don’t leave tax to chance.

At Williamson & Croft, we specialise in navigating the complexities of SDLT and other property-related taxes. Whether your circumstances are simple or highly complex, we’ll ensure your transaction is structured correctly, compliant with current law, and optimised for your long-term goals.

Your property decisions are too valuable to risk on assumptions. Let’s get it right the first time. Contact us today.

Photo: UK Government, licensed under the Open Government Licence v3.0
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