UK deputy prime minister Angela Rayner resigns over unpaid tax on flat

Keir Starmer's second-in-command Angela Rayner has stepped down as the UK deputy prime minister, housing secretary, and deputy Labour leader after admitting she underpaid stamp duty on a property purchase. Her resignation follows an independent probe that found she breached the ministerial code.

"I take full responsibility for this error," she said in her resignation letter to Prime Minister Keir Starmer.

Rayner’s exit comes in the wake of an independent investigation which concluded she failed to act on legal advice when buying a flat in Hove. The report found she ignored repeated guidance to seek expert tax counsel, breaching the ministerial code.

Rayner admitted to underpaying stamp duty and referred herself to the government's ethics adviser amid mounting pressure and media scrutiny. She reportedly avoided around £40,000 in tax by removing her name from another property's deed.

Rayner said her legal team had not fully accounted for personal circumstances, including a trust fund set up for her disabled son. Despite this, two separate law firms had warned her to seek specialist tax advice, with one explicitly recommending it.

Prime Minister Keir Starmer said Rayner had made the right decision but said he was "very sad" to see her leave his government.

"I have nothing but admiration for you and huge respect for your achievements in politics," Starmer wrote. The handwritten letter signed off "with very best wishes and with real sadness."

Starmer defended her earlier this week in Parliament, saying he was “proud to sit alongside” her and praised her transparency. Still, tax experts say Rayner will “almost certainly” face a fine for “carelessness.”

Rayner has served as Labour MP for Ashton-under-Lyne since 2015 and was elected deputy Labour leader in 2020. She was appointed deputy PM and housing secretary after Labour’s general election win last year.