The recent stamp duty controversy surrounding Deputy Prime Minister and Housing Secretary Angela Rayner underlines just how easy it can be to get it wrong with regard to Stamp Duty Land Tax (SDLT).

Stamp Duty Land Tax is a tax payable when a property is purchased. The rules around SDLT have become vastly more complex in recent years.

As of September 2025, SDLT is charged at a percentage on portions of the property price above certain thresholds. An extra 3% surcharge (higher rate) applies to each band if you already own another residential property anywhere in the World and you are not replacing your main home.

What Happened to Angela Rayner?

  • In May 2025, Angela Rayner purchased an £800,000 flat in Hove. She states that at the time she believed, having taken legal advice, that she qualified for the standard rate of stamp duty, paying around £30,000. However, due to a more complex trust arrangement involving her Manchester family home, she should have paid the higher rate of approximately £70,000, meaning a shortfall of about £40,000.
  • The crucial point lies in the so-called “deeming provisions”, legal rules that treat perceived interests in property, such as those held via trusts, as counting toward stamp duty liabilities. Tax counsel subsequently informed her that these applied to her case.
  • Ms Rayner has described the error as unintentional, rooted in complex personal and legal circumstances, including divorce and arrangements for her disabled son.
  • She has referred herself to the independent ethics adviser and is working with HMRC to settle the shortfall.

This high-profile case serves as a reminder of critical points to consider in relation to SDLT when purchasing a property.

Trusts

Trusts and deeming provisions are not straightforward. If there exists a trust, especially for estate or planning purposes, it’s more than just a formality. It must be considered whether that trust would trigger additional stamp duty. Those provisions change how HMRC views ownership, even if it’s by legal fiction.

If there are unusual arrangements, purchasers should always seek advice from a specialist tax adviser or stamp duty expert. This is especially true when complexities like trusts or second-home designations arise.

As appears to be the case for Angela Rayner; declaring one property as the main residence for stamp duty, but another for council tax or the electoral roll, can cause issues as there is a risk of conflicting information. Purchasers should seek to at least understand the tax implications of any variances.

Conveyancers and Tax Experts

The Angela Rayner case is a reminder that even well-meaning and conscientious individuals can be tripped up by the intricate and overlapping rules of property taxation.

Conveyancers play a pivotal role in navigating these pitfalls but purchasers should be aware that most conveyancers are not tax experts and they should take advice from the necessary experts prior to instructing their conveyancer to complete the tax return.

At Timms Solicitors, we will seek to gather as much information as possible about a purchaser and explain the basics of the SDLT thresholds, rates and whether the purchase appears to be subject to any higher rates. However, we are not qualified tax advisors so where circumstances dictate, we will refer to qualified tax advisors so that any unusual circumstances and possible complexities can be ironed out. We will complete the tax return based on the purchaser’s instructions so it is imperative that the right advice is taken at the right time.

Next Steps...

For any advice on Conveyancing matters, please contact me on 01283 561531 or email k.holmes@timms-law.com.

For more information on Conveyancing, visit our webpage here.