Why Is Angela Rayner Facing Questions Over Her Tax Arrangements?

Deputy Labour leader Angela Rayner is facing questions over her tax arrangements relating to the sale of her former council house.

Rayner has denied any wrongdoing and said that she will not publish her "personal" tax advice over the matter.

On Wednesday, Greater Manchester Police confirmed they are "reassessing" their decision to not investigate the situation, following a complaint from a Conservative MP. 

The issue relates to the sale of an ex-council house Rayner previously owned in Stockport, Greater Manchester. She has been accused of avoiding paying capital gains tax on the sale in 2015. The claims first emerged in the biography Red Queen written by peer Lord Ashcroft, published this month. 

According to gov.uk, capital gains tax is a tax on the profit when you sell an asset that has increased in value. The tax is paid on the “gain” – the increase in value – rather than the overall amount of money you receive for selling the asset. 

You do not pay capital gains tax when you are selling a main residence, but HMRC rules state that married couples and civil partners can only count one property as their main home. 

Rayner’s house on Vicarage Road was bought for £79,000 in 2007. In March 2015 the house was sold for £127,500, equating to a gain of £48,500. 

Vicarage Road was claimed to be the main home and therefore the tax was not paid. However, there have been claims that for some of this time she was primarily living at an address in Lowndes Lane owned by her then-husband The couple separated in 2020. 

In a Sunday Times article, tax expert Dan Niedle estimated that Rayner could owe around £1,500 in capital gains tax. 

Rayner has denied any wrongdoing, but said on Thursday morning that she does not plan to publish her “personal