The Conservatives have repeated calls for Angela Rayner to resign after a legal firm she used said it did not provide her with tax advice in a row over underpaid stamp duty.
Party leader Kemi Badenoch said more “damning evidence” had come to light regarding the deputy leader’s tax affairs, which is now subject to an investigation by the prime minister’s independent ethics adviser Sir Laurie Magnus.
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The Daily Telegraph reported that Verrico & Associates, a conveyancing firm that handled the purchase of her £800,000 flat in Hove, East Sussex, did not in fact give tax or trust advice to Ms Rayner – and that they believed they had been made “scapegoats” in the political row.
Joanna Verrico, the managing director, told The Telegraph: “We acted for Ms Rayner when she purchased the flat in Hove. We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for.
“The stamp duty for the Hove flat was calculated using HMRC’s own online calculator, based on the figures and the information provided by Ms Rayner. That’s what we used, and it told us we had to pay £30,000 based on the information provided to us. We believe that we did everything correctly and in good faith. Everything was exactly as it should be.
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“We probably are being made scapegoats for all this, and I have got the arrows stuck in my back to show it. We are not an inexperienced firm, but we’re not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these.”
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Sky News has approached representatives for Ms Rayner for comment as well Verrico & Associates.
The deputy prime minister, who is also the housing secretary, has been under scrutiny after the newspaper claimed she avoided £40,000 in stamp duty on the flat in Hove by removing her name from the deeds of another property in Greater Manchester.
Ms Rayner said she sold her stake in her family home in Ashton-under-Lyne to a trust that was set up to provide for her teenage son, who has lifelong disabilities – meaning she did not technically own that home when she purchased the one in Hove, and so was not subject to the higher rate of stamp duty that applies to second homes.
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On Tuesday Sir Keir Starmer’s deputy claimed she made an honest mistake owing to her “complex” living situation and that lawyers initially advised her she only owed the basic rate of stamp duty for the Hove property.
In an interview with Sky News’ Electoral Dysfunction podcast, Ms Rayner became tearful as she claimed she received incorrect tax advice and spoke to her family about “packing it all in”.
However, following subsequent media reports, Ms Rayner sought further legal advice on Monday this week which advised her that the higher rate of stamp duty was in fact due on her East Sussex flat.
The deputy prime minister has claimed she made an honest mistake as lawyers initially advised her she only owed the basic rate of stamp duty when she bought a flat in Hove in May.
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On the statement from Verrico & Associates, Ms Badenoch said: “This is yet more damning evidence that Angela Rayner has not been honest with the British public.
“From the start we’ve had nothing but excuses, deflections and lies. Enough is enough.
“How many final straws can there be for Angela Rayner? She must resign or Keir Starmer must finally find the backbone to sack her.”
Sir Keir Starmer has so far said he would not be drawn on Ms Rayner’s political future, but said he would “of course” act on the findings of Sir Laurie who will look into whether she broke ministerial rules.
In an interview with the BBC, Sir Keir said: “There’s a clear procedure. I strengthened that procedure. I am expecting a result pretty quickly.
“I do want it to be comprehensive … and then of course I will act on whatever the report is that’s put in front of me.”
