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In September, Deputy Prime Minister and Housing Minister Angela Rayner resigned after she underpaid Stamp Duty Land Tax (SDLT) when purchasing an £800,000 flat in Hove.
According to a BBC report, the Prime Minister’s ethics adviser stated that Rayner had “acted with integrity” yet had still breached the ministerial code as she failed to seek tax advice when recommended [1].
Rayner’s misguided actions offer insights into the challenges around tax on second homes and the benefits of professional guidance.
The difference between Stamp Duty Land Tax on first and second homes is stark
The following table demonstrates the rate of SDLT you would pay on your main home.
Source: MoneyHelper [2]
If you purchased your main home for £900,000, you would pay:
- 0% on the first £125,000
- 2% on the value between £125,001 and £250,000 (£2,499.98)
- 5% on the value between £250,001 and £900,000 (£32,499.95)
This gives you a total bill of £34,999.93.
You pay a higher rate of SDLT when purchasing additional properties beyond your main home, and Angela Rayner found herself on the wrong side of this rule about additional properties.
Source: MoneyHelper [3]
If you purchased an additional property worth £900,000, you would pay:
- 5% on the first £125,000 (£6,250)
- 7% on the value between £125,001 and £250,000 (£8,749.93)
- 10% on the value between £250,001 and £900,000 (£64,999.90)
This would leave you with a total SDLT bill of £79,999.83.
Misunderstanding the rules does not count as a defence
Prior to purchasing her flat in Hove, Angela Rayner owned a family home in Ashton-under-Lyne. In 2020, she set up a trust and transferred part of the property into it for the benefit of her son (who lives with a disability). In January 2025, she sold the remaining share of her stake to the trust.
When she later purchased the flat in Hove, her solicitors treated it as if it was her only property when calculating how much SDLT she needed to pay.
However, the law states that an individual can be deemed to have a “major interest” in a property in certain circumstances. This applies if the property is held in a trust for a child, spouse, or civil partner.
As Rayner had a major interest in the Ashton-under-Lyne property, the flat in Hove should have been considered a second property.
HMRC does not accept confusion about the rules as a defence, and Rayner was considered at fault.
Professional advice can help you avoid falling foul of complex tax rules
As the recent case involving Angela Rayner demonstrates, trying to navigate complex financial systems on your own could lead to significant mistakes and possible penalties. Moreover, you might miss opportunities to manage your tax liability.
When in doubt, seek the correct advice. If we can ever help directly or by an introduction to a specialist, please let us know.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning or tax planning. IPS Capital does not provide tax advice or advice on credit or mortgages.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
[1] 16.09.2025 Angela Rayner resigns after underpaying tax on Hove flat BBC
[2] 16.09.2025 Stamp Duty – everything you need to know MoneyHelper
[3] 16.09.2025 Stamp Duty – everything you need to know MoneyHelper
