Attorney General Lord Hermer has obtained planning approval to construct a luxury holiday home on land valued at £1.5 million, which was gifted to him in a transaction that appears to have circumvented hundreds of thousands of pounds in inheritance tax.
Gift Under the Seven-Year Rule
The Mail on Sunday can reveal that Lord Hermer, who has faced accusations of pursuing a 'witch hunt' against British troops, and his wife were given land and two large barns in an affluent area of West Sussex in March 2019 by his wife's parents. Under the so-called 'seven-year rule', the plot is now exempt from an inheritance tax bill of up to £470,000. This rule allows gifts to be passed on free from inheritance tax if the donor lives for seven years after making the gift.
Development Plans
The Hermers have already installed a stunning 'natural' swimming pool and a landscaped seating area on the site. They also have approval to convert a large 18th-century barn into a luxurious home featuring four en-suite bedrooms, two lounges, a games room, and boat storage. The second, smaller barn had already been converted into a home before it was transferred to the Hermers.
Controversy Over Past Legal Work
The revelation comes just days after claims that while in private practice, Lord Hermer, one of Sir Keir Starmer's closest allies, sought an hourly fee of £450 for pursuing claims of war crimes against British soldiers, which were later found to be 'deliberate lies'. It is alleged that he acted as lead counsel in civil claims against the Ministry of Defence brought by Iraqis who claimed British soldiers had tortured and murdered civilians during the Battle of Danny Boy in Southern Iraq in 2004. Emails show that he was warned his clients could be 'on the make' and that their allegations were 'nonsense', according to The Daily Telegraph.
Calls for Resignation
The UK's most senior lawyer is now facing calls to resign over his role and has been reported to the barristers' watchdog for alleged serious professional misconduct. A spokesman for the Attorney General said that he had 'always acted with the highest professional standards' and that 'any suggestion he knowingly acted on false claims is categorically untrue'.
Property Transactions
Lord Hermer and his wife were granted permission for the works on their Sussex land in 2023. Sources close to the couple say they have not proceeded with the plan. The couple acquired the site in March 2019 when the parents of Lord Hermer's wife, who live in a house they own nearby, transferred them five separate but adjoining title deeds. Official documents show that, while the plots were valued at £1.5 million together, no money was recorded as being paid, meaning they were given as a gift. Lord Hermer and his wife also own a home in London, which was bought for £1.6 million in 2005.
A spokesman for Lord Hermer said: 'The family transferred ownership of the property in an entirely legal and proper way, and there is no suggestion from The Mail on Sunday otherwise.'
