Tax duty scandal leads to Rayner's resignation as legal counsel advice proves insufficient

In a recent turn of events, UK Deputy Prime Minister Angela Rayner found herself embroiled in a tax affair, admitting to not paying enough taxes when purchasing a property. This prompted an independent investigation into her adherence to ethical standards for government members.

At the heart of the matter is the purchase of a seaside flat in Hove, valued at £800,000, for which Rayner underpaid £40,000 in tax. The UK firm Shoosmiths was named as the firm that set up Rayner's trust in 2020, but they stated that they did not act for Angela Rayner in relation to the property purchase or the SDLT aspects.

Rayner has since blamed her lawyers for providing inadequate advice regarding the tax issue. However, Kent-based licensed conveyancers Verrico & Associates, who were reported to have acted on the purchase, have expressed feeling "stuck with arrows" due to being made scapegoats for Rayner's tax scandal.

Conveyancing solicitors are not typically expected to provide detailed advice on stamp duty land tax (SDLT). However, without expert and specialist legal advice, public figures risk speculation, harmful scrutiny, and potential financial harm, as the Angela Rayner case shows.

James Kipping, partner at MHA, stated that the importance of openly sharing the full story and all potentially relevant facts when seeking professional advice is highlighted by the headlines this week. Robert Hines, partner at law firm Vardags, echoed this sentiment, stating that public figures cannot afford to hide behind legal advice and must ensure it is expert and specialist advice.

Joanna Verrico, managing director of Verrico & Associates, stated that they are not qualified to give advice on trust and tax matters. Caroline Foulger, partner at Hunters Law, added that solicitors have to be very clear in their retainer as to what they are and are not advising on.

James Vernor-Miles, head of the residential property at Hunters Law, stated that if Angela Rayner's conveyancers only asked her if she owned any other property and she answered "No", they gave reasonable advice based on incomplete information.

Adam Craggs, head of tax, investigations, and financial crime at RPC, stated that it would be unusual for conveyancing solicitors to offer the type of SDLT advice in question. Verrico & Associates, in their statement, rebutted Rayner's claim, stating they were made "scapegoats" for her scandal.

In light of this controversy, City AM was advised to refer back to Angela Rayner's statement regarding the conflicting information regarding who is responsible for the tax advice. It is clear that the complex area of SDLT requires specialist knowledge, and public figures must ensure they seek the right advice to avoid such controversies.