Deputy Prime Minister Angela Rayner is embroiled in a deepening political storm as fresh demands for a tax investigation into the sale of her former council house have been lodged with HMRC.
The controversy centres on whether Ms Rayner correctly declared her main residence for capital gains tax purposes when she sold the property in Vicarage Road, Stockport, in 2015. Critics allege she may have owed thousands in taxes if it was not her principal home.
Mounting Political Pressure
Tory MPs, led by former minister James Daly, have formally written to the tax authorities urging them to probe the matter. The move significantly ramps up the pressure on one of the Labour government's most senior figures.
In a defiant response, a Labour spokesperson dismissed the allegations as a "desperate smear campaign" by a Conservative Party "reeling from electoral defeat". They reiterated that Ms Rayner has followed all tax rules and received expert advice confirming her position.
The Core of the Controversy
At the heart of the row are questions about which of two properties Ms Rayner owned was officially designated as her main home:
- Her ex-council house in Vicarage Road, which was sold.
- A separate property where her husband was registered to vote.
Capital gains tax is typically not payable on the sale of a person's main residence, but can be levied on second homes. The timing of the sale and declarations made are now under intense scrutiny.
A Party Standing Firm
Despite the brewing scandal, Labour has closed ranks around its deputy leader. Allies point to legal counsel confirming her compliance with the rules and accuse the Conservatives of political point-scoring.
This early test for the new government threatens to dominate headlines and could prove a significant distraction as Prime Minister Keir Starmer attempts to implement his legislative agenda.
