Conservatives continue urging Rayner to step down as attorneys allege failure to offer tax counsel
In a recent turn of events, the Deputy Leader of the Labour Party, Angela Rayner, finds herself under investigation for allegedly evading stamp duty on her Hove flat. The investigation is being conducted by Sir Laurie Magnus, the Prime Minister's independent ethics adviser.
The controversy stems from the purchase of Rayner's £800,000 flat in Hove, East Sussex, which was handled by Verrico & Associates, a conveyancing firm. However, it has been reported that Verrico & Associates, led by managing director Joanna Verrico, did not provide Rayner with tax or trust advice regarding the transaction.
Initially, Rayner received incorrect tax advice, but it was only after subsequent media reports that she sought further legal advice. In an interview with the Electoral Dysfunction podcast, Ms Rayner became tearful and spoke about considering "packing it all in".
The higher rate of stamp duty was found to be due on Ms Rayner's East Sussex flat. To avoid this, she sold her stake in her family home in Ashton-under-Lyne to a trust that was set up to provide for her teenage son, who has lifelong disabilities. This move, however, has been criticised as an attempt to evade the higher rate of stamp duty that applies to second homes.
The Conservative Party has called for Rayner to resign due to this dispute, with the party leader, Kemi Badenoch, stating that more damning evidence has emerged regarding Rayner's tax affairs. Badenoch accused Rayner of making excuses, deflections, and lies, and called for her resignation or for Keir Starmer to sack her.
Starmer, however, stated that there is a clear procedure for investigating potential rule violations, and he expects a quick and comprehensive report. He also assured that he will act on the findings of the report once it is presented to him. Representatives for Rayner and Verrico & Associates have been approached for comment.
In response, Sir Keir Starmer stated that "We have a clear procedure for investigating potential rule violations, and I expect a quick and comprehensive report. I will act on the findings once they are presented to me."
Joanna Verrico, the managing director of Verrico & Associates, stated that they were made "scapegoats" in the political row and that they always refer clients to an accountant or tax expert for such advice. She added that they did not provide tax or trust advice to Rayner.
The person responsible for the betrayal regarding Rayner's stamp duty issue, after Verrico & Associates confirmed they did not provide her with tax or trust advice, is not named. The firm, however, has denied giving such advice and stated they are being scapegoated in the political row.
This development comes at a time when the Labour Party is already facing internal strife, with some members questioning Starmer's leadership. The outcome of the investigation into Rayner's tax affairs will likely have significant implications for both Rayner and the Labour Party.
