Recently, the media has been awash with reports about the Deputy Prime Minister Angela Rayner admitting that she underpaid Stamp Duty Land Tax (SDLT) by approximately £40,000 when she bought an £800,000 flat in Hove in May 2025. Rayner has now resigned after the independent ethics advisor found that she failed to seek expert tax advice despite it being suggested that she do so by two legal firms and in one case recommended to do so.
It is highly likely that Rayner will now face penalties for her careless error which could be 30% of the underpaid SDLT.
What Happened?
- Rayner treated the Hove flat as a replacement main residence for SDLT purposes, paying around £30,000 in stamp duty instead of the higher £70,000 rate applied to second homes.
- Rayner states that the decision was based on advice she received at the time—specifically from a conveyancer and two experts in trust law—who advised that she was only liable for the standard SDLT rate
- However, after the press investigation Rayner sought expert advice which revealed that because she had transferred her interest in her previous home into a trust for her disabled son, HMRC still treated her as owning that property. Consequently, the flat didn’t qualify as a replacement main residence, triggering the higher SDLT surcharge.
The Hard Truth About SDLT Complexity
Rayner’s case is a stark reminder that SDLT rules are highly technical and can trip up even high-profile individuals.
What adds to the complexity is the fact that HMRC’s own calculator does not deal with this situation. The question asked when considering the rate of SDLT is “Will the purchase of the property result in owning two or more properties?” and there is no guidance as to what the word “own” can mean in the context of SDLT.
Of course any SDLT expert worth their salt knows that the legislation (Sch 4ZA FA 2003) makes it clear that Rayner would have been liable to the extra tax and an SDLT expert would certainly have considered the legislation before advising – assuming that the full information was provided.
Questions Arising From Rayner’s Situation
- Was the original advisor given all of the information to enable them to provide accurate advice?
- What questions did the original advisor ask?
- Why didn’t Rayner heed her advisors suggestion to seek expert advice?
We will probably never know the answers to these questions but, what we do know is that SDLT is complex and the right questions must be asked to enable the right advice to be provided.
A Warning for Homebuyers Everywhere
Even outside the realm of politics, individuals with non-standard personal circumstances—trusts, nested living arrangements, multiple properties—face inadvertent underpayments, additional interest charges, penalties, and HMRC scrutiny.
The Key Takeaway? Don’t Rely on Assumptions—Get Specialist Advice
The fallout from Rayner’s error shows the need for pre-transaction specialist, professional tax advice—not just from general conveyancers, but from specialist property tax advisers, even more so when complex arrangements are involved.
Conclusion: Expertise Is Priceless—and Cost-Saving in the Long Run
Rayner’s situation underscores how complicated SDLT is, how limited the guidance for homebuyers can be and how easy it is for professionals to get it wrong.
SDLT mistakes are expensive and for homebuyers, there’s simply too much at stake not to consult the right experts.
You don’t know what you don’t know and that is where experts like Relatus can help.
We know the right questions to ask and how your circumstances will affect your SDLT position. We can provide expert pre-transaction advice and we offer a range of fee structures meaning that a homebuyer will not face a costly bill and in the long run they will most certainly be better off.
Contact Relatus today for expert, professional SDLT advice.
