The Deputy Prime Minister says she transferred part of a family home into a trust to protect her disabled son — now, newly revealed payments from that trust and a disputed stamp-duty discount have triggered probes that could end her ministerial career.
Angela Rayner faces an urgent ethical and political test after an independent inquiry into her tax affairs entered its final stages and new reporting linked funds from a family trust — set up after an NHS compensation award for her disabled son — to the deposit on a recently purchased £800,000 seaside flat.
The Deputy Prime Minister is awaiting the findings of an inquiry led by ethics adviser Sir Laurie Magnus, with HM Revenue & Customs conducting a parallel investigation. The unfolding controversy has prompted calls from some quarters for her resignation or dismissal, while senior Labour ministers have rallied to her defence.
Sir Laurie’s inquiry into Ms Rayner’s property purchase and related tax treatment is expected to report within days. Separately, HMRC is said to be examining whether stamp duty was underpaid on the Hove property she bought over the summer.
Ms Rayner has acknowledged receiving a stamp-duty discount at the time of the purchase which she later said she was not entitled to. She referred herself to the independent adviser after seeking legal guidance, and Downing Street has continued to defend her while the investigations proceed.
Reporting has stated that Ms Rayner received £162,500 from a trust created to provide for her 17-year-old son, Charlie, who was born extremely prematurely and has lifelong care needs. According to those reports, Ms Rayner sold a 25% share of the family home in Greater Manchester and transferred the proceeds into a trust established in 2020; funds were then paid out from that trust and used towards the deposit on the Hove flat.
Ms Rayner has previously said the Greater Manchester property had been adapted for her son’s needs and that transferring a share into the trust was intended to safeguard his stability in the family home.
The controversy has provoked a swift political response. Some opposition figures and commentators argue the matter raises questions about ministerial conduct; others, including senior Labour ministers, have defended Ms Rayner and accused critics of applying a double standard.
Chancellor Rachel Reeves publicly expressed “full confidence” in Ms Rayner. Other ministers, including Peter Kyle, have suggested that part of the intensity of the scrutiny may be shaped by Ms Rayner’s working-class background and public profile.
Downing Street has repeatedly defended the Deputy Prime Minister and said Sir Keir Starmer has been in close contact with her during the controversy. Labour has said Ms Rayner sought legal advice and acted in good faith in disclosing the position.
Ms Rayner is reported to have sought legal advice from a conveyancer and two trust specialists prior to making public statements about the purchase. Cabinet colleagues have said fresh legal advice was received shortly before she publicly outlined the position and referred herself to the independent adviser.
The inquiry’s timetable — now at an advanced stage — will be pivotal. If Sir Laurie finds breaches of the ministerial code or tax liabilities that were not properly disclosed or settled, Ms Rayner could face suspension, dismissal, or be asked to resign. If HMRC identifies unpaid tax liabilities, separate legal and financial consequences could follow.
Key details remain confidential or unverified in public reporting:
The exact total of any NHS compensation award has not been publicly disclosed.
The trust’s precise terms and the full movement of funds are subject to privacy and, in some cases, legal confidentiality.
Stockport NHS Foundation Trust declined to comment on any settlement, citing patient confidentiality.
Ms Rayner’s office has been approached for comment; previous statements said she acted on legal advice and took steps to regularise the situation.
With Sir Laurie’s report imminent and HMRC inquiries continuing, the coming days are likely to determine Ms Rayner’s immediate political fate. Outcomes could range from exoneration to sanctions under the ministerial code, and possibly tax remedies if HMRC concludes duties were not fully paid.
For now, Labour ministers are publicly backing Ms Rayner while the formal processes play out. The party’s handling of the affair and the inquiry’s findings will shape whether the Deputy Prime Minister can weather the storm or whether her ministerial career will be curtailed.
What happens next: watchdog findings and any HMRC conclusions will be decisive. Observers say the party’s response to those findings — and whether legal, tax or ethical breaches are established — will determine whether Ms Rayner remains in post.
