Angela Rayner cleared by HMRC over tax on sale of former home

It has been reported that HM Revenue and Customs verified that Angela Rayner does not need to pay any capital gains tax for selling her previous council house. The Guardian has obtained a document stating that there will be no additional consequences.

The revenue department revealed a fortnight ago that after examining the proof, they had established that the residence in Stockport belonged to the second-in-command of the Labour party for the entire duration of her ownership. Thus, there would be no obligation to pay tax.

On Tuesday, the Greater Manchester police reported that Rayner was innocent of the accusations that she provided an inaccurate permanent address on the electoral register, which could have led to criminal charges.

The police announced that they will not be pursuing any additional measures on the matter. They clarified that personal tax and council tax matters were not within their authority, and thus disclosed their findings from a six-week investigation to both HMRC and Stockport council.

According to a representative of the council, they have carefully looked into and answered all the communications related to the issue. Furthermore, they have decided not to take any more action on behalf of the council.

HMRC cannot confirm or deny whether an investigation into Rayner's situation is underway because they respect the privacy of taxpayers and do not comment on individual cases.

Initially, it was the Conservative Party who had requested the police to conduct an investigation. They had emphasized that it was incumbent upon Rayner to come clean by making public the details of the tax guidance she was provided with.

The Guardian viewed a document from HMRC that stated there is no need to pay capital gains tax on the sale of Rayner's previous residence located at 80 Vicarage Road.

The article conveyed that the tax authority reviewed the facts given by the Member of Parliament and her former partner, Mark, and determined that the residence in question had indeed served as her primary dwelling. They declared that there was no need for further action in this matter.

Rayner's supporters were sure that she would be exonerated. They argued that her legal and monetary records, such as bills, salary statements, and bank account information, unequivocally proved that her personal residence was indeed her main residency.

Rayner had declared that she would step down from her position as deputy leader upon discovery of any proof that she had committed any illegal act by evading tax while selling her property at a gain back in 2015.

The Conservative party had requested that the police investigate allegations of misconduct by her regarding the designation of her home and its inclusion in the electoral register.

At first, GMP asserted that there was no evidence to support the case, but they later opened an inquiry due to the persistent coverage of the issue by the conservative media.

When the incident occurred, Rayner requested to be left alone and clarified that there was no intention to deceive or scheme regarding her housing situation. She explained that her family situation had been challenging.

Back in 2007, Rayner wasn't yet a member of parliament when she purchased a property worth £79,000 using the right-to-buy initiative. This allowed her to obtain a 25% reduction from the original price of the property. A year after, she had a baby with her former partner named Mark. He had a house situated around a mile away from her property.

Their child was delivered early and had to remain in intensive care for a prolonged period of eight months. During this duration, the couple retained their individual homes. In 2010, they eventually tied the knot, one year after welcoming their second offspring.

During March of 2015, Rayner made a sale of her house for a price of £127,500. This sale provided her with a profit of £48,500. However, since it was marked as her primary residence, the profit wasn't subject to any capital gains tax.

Some members of the Conservative Party claimed that this information was not accurate, as she mostly lived at her former spouse's place, and a few locals hinted that her sibling also resided at Vicarage Road.

If a married couple possesses separate properties, they are required to have a solitary primary residence according to taxation regulations.

In the wake of the police statement, Rayner voiced her thoughts, stating that she had witnessed the Conservative party engage in this tactic previously - using reports to the police against their political adversaries during election periods, all in an attempt to divert attention away from their own poor performance. She expressed her appreciation for those individuals who remained steadfast and supportive of her and her family during this ordeal.

Keir Starmer expressed his satisfaction and added that he always had confidence in Angela's innocence.

In 2022, the leader of the Labour party was investigated by the police, which was strongly advocated by Conservative MPs. The investigation conducted by the Durham police was related to allegations that he and Rayner had violated the lockdown rules by having beer and a takeaway curry with some of the Labour staff the previous year. However, the investigation did not find any evidence to support these claims, and as a result, the Labour leader was cleared of any wrongdoing.