Earlier this year Angela Rayner made headlines after it was revealed that she had not paid the correct amount of Stamp Duty Land Tax (SDLT) on the purchase of a flat. This resulted in her resigning as Deputy Prime Minister and Housing Minister.
This episode highlights the complexity of UK property taxes and the importance of seeking specialist tax advice with complex financial arrangements, such as a property purchase involving the use of a trust.
Angela Rayner purchased a flat for around £800,000 in May 2025. As usual, the conveyancing solicitor completed the SDLT submission. The solicitor assumed the flat would be Ms Rayner’s only property, and so claimed the standard SDLT rate of £30,000. However, she already had another property, which she had placed into a trust for her disabled son earlier in 2005.
Placing any asset in a trust means you no longer have control over it, the nominated trustees do. This legal arrangement is often used as an effective mitigation strategy against Inheritance Tax. However, in this case, HMRC ruled that, for SDLT purposes, Ms Raynor still had a sufficient interest in the property and therefore remained a beneficial owner; and owned £40,000 in underpaid Stamp Duty.
This underlines the importance of seeking specific tax advice, as property purchases can be a complicated tax issue, particularly if:
- There are properties in a trust
- You have a buy-to-let portfolio
- You are changing the designation of a main residence.
HMRC will pursue any underpayment of SDLT, and may also impose financial penalties. The severity of these penalties will often depend on whether any errors are deemed to be simply carelessness, or a deliberate attempt to mislead.
Please contact Jackie, Andrew or Siobhan, if you wish to discuss SDLT.
