Rayner resigns
Angela Rayner ignored two warnings over tax advice, report reveals
Angela Rayner ignored two warnings over tax advice, a report by the ethics has revealed.
The Deputy Prime Minister resigned on Friday after a Telegraph investigation exposed her tax affairs.
The inquiry came days after admitting that she had failed to pay a £40,000 tax bill on the purchase of her seaside home.
She initially blamed the legal advice she received before referring herself to the ethics watchdog and HMRC.
But The Telegraph disclosed claims by Ms Rayner’s lawyers that they had been made “scapegoats” and not given her tax advice.
In his letter to the Prime Minister, Sir Laurie Magnus, the independent adviser on ministerial interests, said: “It is highly unfortunate [...] that Ms Rayner failed to pay the correct rate of SDLT on this purchase, particularly given her status and responsibilities as the Secretary of State for Housing, Communities and Local Government and as Deputy Prime Minister.
“She believed that she relied on the legal advice she had received, but unfortunately did not heed the caution contained within it, which acknowledged that it did not constitute expert tax advice and which suggested that expert advice be sought.”
Rayner found to have broken ministerial code
Angela Rayner broke the ministerial code by failing to pay the correct amount of stamp duty on her seaside flat, the ethics watchdog has found.
In his letter to the Prime Minister, Sir Laurie Magnus, the independent adviser on ministerial interests, said: “It is highly unfortunate [...] that Ms Rayner failed to pay the correct rate of SDLT on this purchase, particularly given her status and responsibilities as the Secretary of State for Housing, Communities and Local Government and as Deputy Prime Minister.
“She believed that she relied on the legal advice she had received, but unfortunately did not heed the caution contained within it, which acknowledged that it did not constitute expert tax advice and which suggested that expert advice be sought.”
Sir Laurie said it was “deeply regrettable that the specific tax advice was not sought”, adding: “I believe Ms Rayner has acted with integrity and with a dedicated and exemplary commitment to public service.
“I consider, however, that her unfortunate failure to settle her SDLT liability at the correct level, coupled with the fact that this was established only following intensive public scrutiny, leads me to advise you that, in relation to this matter, she cannot be considered to have met the “highest possible standards of proper conduct” as envisaged by the Code.
“Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the Code to have been breached.”
[Source: Daily Telegraph]
