In response to "did angela rayner evade tax",AI says:-"As of September 2025, Angela Rayner admitted to underpaying stamp duty on a property purchase but has not been found guilty of tax evasion. Following an ethics investigation, she resigned from her government positions, including Deputy Prime Minister, on September 5, 2025. Here are the key details of the tax controversy:Admitted underpayment: Rayner admitted that she underpaid the Stamp Duty Land Tax (SDLT) on a flat she bought in Hove. The underpayment was estimated to be around £40,000.Background of the issue: The problem arose due to the complex living and financial arrangements following her 2023 divorce. A trust was established for her disabled son, which involved transferring ownership of her share in the family home in Greater Manchester. However, under tax law, because the trust's beneficiary was her under-18 child, she was still considered an owner for stamp duty purposes. This meant the Hove flat should have been classified as a second home and taxed at a higher rate.Reason for the error: Rayner attributed the initial underpayment to incorrect legal advice, which she said failed to properly account for her specific circumstances. The conveyancing firm involved later stated they did not provide tax advice. After media scrutiny, Rayner sought further legal counsel, confirmed the underpayment, and referred herself to the tax authorities (HMRC) and the Prime Minister's ethics adviser.Ethics investigation findings: The independent adviser on ministerial standards, Sir Laurie Magnus, found that Rayner had breached the ministerial code. While acknowledging her integrity and commitment to public service, Magnus concluded she had failed to "meet the 'highest possible standards of proper conduct'" because she did not heed a caution that her initial legal advice was not expert tax advice.Resignation: Following the ethics report, Rayner resigned from her roles as Deputy Prime Minister, Housing Secretary, and Deputy Leader of the Labour Party. In her resignation letter, she took "full responsibility for this error".HMRC investigation: Separately from the ministerial standards probe, HMRC is investigating whether Rayner was "careless" with her tax affairs. This could result in a penalty, though a final decision has not been reached.Capital Gains Tax (CGT): Earlier questions regarding the 2015 sale of her former council house were investigated by Greater Manchester Police and referred to HMRC in May 2024. HMRC and Stockport Council both concluded that no further action was needed concerning the CGT aspect of her finances. "In response to:-"is carelessness in tax affairs evasion""No, carelessness in tax affairs is not the same as evasion, but it can still result in significant penalties. The key difference lies in intent: tax evasion requires deliberate and conscious dishonesty, whereas carelessness involves a failure to take reasonable care."(There is more on the differences between evasion and carelessness but even I have a boredom threshold)
David Ainsworth ● 43d