Angela Rayner’s £40,000 SDLT mistake explained & how it could have been avoided

Angela Rayner’s recent resignation made headlines, but at the heart of it is a very common property tax issue. One we’ve seen many times as an SDLT specialist firm.

Earlier this year, the ex DPM bought a flat in Hove for around £800,000. She paid Stamp Duty Land Tax (SDLT) at the standard rate, believing she no longer held any interest in her previous home. According to press reports, she had recently transferred her remaining interest into a trust.

But here’s where things can get complicated.

Even though the former home was held in trust, because her son was under 18, SDLT rules may treat her as still owning the property for tax purposes. 

When property is placed in certain types of trusts for children under 18, the law can treat the parent (in this case, Rayner) as the owner for SDLT, meaning she effectively owned two properties at the time of the Hove purchase. That meant she should have paid the additional surcharge, around £40,000 more in tax. 

If her son had been over 18 and held the interest directly, the surcharge might not have applied. Timing and the specific trust arrangement really mattered in this case. 

What we could do to support

If she had come to Bonham & Brook for advice before completing the purchase, here’s how we would approach it: 

• Reviewed the full ownership history and the trust setup in detail. 

• Identified the relevant deeming rules and explained how they applied to her exact situation. 

• Issued an SDLT Rate Certification, a written opinion confirming the correct SDLT rate, backed by legislation and HMRC guidance. 

This is a service we provide regularly for clients, on a cost-effective basis. In Rayner’s case, that relatively small fee could have avoided a costly mistake and likely the political fallout that followed. 

A few takeaways for anyone dealing with property and trusts:  

• Just because a property is in a trust does not mean you are no longer liable for SDLT. 

• SDLT is highly technical and very easy to get wrong. Conveyancers are not SDLT specialists. Always get proper advice before completing. 

• If you or your client is buying, gifting or transferring property and there is any complexity around ownership, trusts or family arrangements, feel free to get in touch. 

A quick review can save you thousands and a lot of stress. 

Next Steps

If you’ve purchased property in the last 4 years and would like to review your transaction, we’re here to help! Our team at Bonham & Brook has over 20 years of combined experience in property tax and can guide you through every step.

Give us a call on 020 3523 9125 or email hmalik@bonhamandbrook.co.uk to get started.