What we know about the Angela Rayner allegations
Greater Manchester Police said they would take no further action against Labour’s deputy leader.
The Conservative Party has insisted Angela Rayner still has questions to answer about her tax affairs, despite police saying they would take no further action following an investigation.
The deputy Labour leader had faced claims she may have broken electoral law and dodged capital gains tax and council tax because of the way she and her then husband used separate homes. But Greater Manchester Police (GMP) and Stockport Council both confirmed on Tuesday that they would take no further action against the Ashton-under-Lyne MP.
Following the decision not to take further action, Rayner hit out at the Tories’ “desperate tactics”. But a tax expert has also weighed into the row, suggesting that there are still unanswered questions about Rayner’s previous living arrangements.
What we know
GMP said they came to their decision not to pursue the claims against Rayner after a “thorough, carefully considered and proportionate investigation”. The force said matters involving tax did not fall within their jurisdiction but they had shared information with Stockport Council and HM Revenue and Customs (HMRC). Stockport Council said it had reviewed the information and also concluded that no further action will be taken.
Rayner said she “welcomed the conclusion of the police investigation” and accused the Tories of “reporting political opponents to the police during election campaigns to distract from their dire record”. Labour leader Sir Keir Starmer said Rayner “has been vindicated” and he “never doubted” that his deputy had done anything wrong.
The row has centred on suggestions in a book by former Tory deputy chairman Lord Ashcroft that she failed to properly declare her main home. Rayner has repeatedly dismissed the attacks as a political smear.
The unauthorised biography alleges she bought the property with a 25% discount in 2007 under the right-to-buy scheme introduced by Margaret Thatcher. Rayner was said to have made a £48,500 profit when selling the house eight years later and didn’t pay the right amount of tax on the sale because of confusion over whether it was her principal residence.
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Tax expert Dan Neidle, who has previously written about the row, suggested that Rayner could be liable for a capital gains tax bills of about £3,000. Following the conclusion of GMP’s investigation, Neidle again pointed to his analysis, and noted the “total absence of tax people saying I’ve gotten it wrong”.
However, Neidle added that the capital gains tax “could be less” or “could be none”. He said that he “hasn’t seen any other tax professionals disagree”. He wrote in February: "I’m not generally in favour of forcing politicians to publish all the details of their tax affairs.... If it turns out she failed to pay a small amount of CGT [capital gains tax], I think most people would understand that as a mistake – but it’s a mistake she can and should explain and correct."
In a statement, the Tories referenced Neidle’s analysis and said HMRC do not comment on their tax probes. The statement said: “As the tax expert and Labour Party member Dan Neidle has said, Rayner still hasn’t provided an explanation. Sir Keir Starmer could easily clear this up by simply reading and then publishing the tax advice Labour claims will exonerate his under-fire deputy.”
The Tories’ desperate tactics have been exposed for what they are and for all to see.
They’ve failed once again.
I am grateful to all those who have stood by and supported me.
My focus now is on securing the change Britain needs, with the election of a Labour government. 🌹— Angela Rayner 🌹 (@AngelaRayner) May 28, 2024
What we don't know
As the HMRC do not comment on individual tax probes, we do not know if they have uncovered any issues relating to Rayner’s taxes. But it is understood they had already looked into the matter at her request and concluded there was no capital gains tax liability.
Rayner says she has been cleared by the HMRC – but has not published the advice she received that exonerates her.
We don‘t know what led GMP to conclude that no further action would be taken. There has been no confirmation of whether Rayner owes any tax – or how much, if so.
There has been pressure for Rayner to publish her tax returns but she has refused to do so. We don’t know if Rayner will eventually release details of her accounts to put the issue to bed.
