Angela Rayner’s lawyers insist they did not give her tax advice on her flat at the centre of a scandal and claim they have been made scapegoats.
Conveyancing firm Verrico & Associates, which managed the purchase of her £800,000 apartment in Hove, East Sussex, insisted it had done everything “correctly and in good faith”, it has been reported.
The deputy prime minister has blamed “legal advice” for paying about £30,000 in stamp duty rather than £70,000 when she bought the seaside home.
Sources close to Ms Rayner had said she received the legal advice from a conveyancer and two experts in trust law on the amount of stamp duty paid – but none has been identified.
Ms Rayner referred herself to the ministerial ethics adviser on Wednesday after admitting she had wrongly listed the flat as her primary residence, benefiting from a tax break. The band of stamp duty applicable to the flat would have been higher had she said the flat was a second home.
She is reported to have removed her name from the deeds of a family home in her Ashton-under-Lyne constituency.
Verrico & Associates, based in Herne Bay, Kent, confirmed it had advised the deputy prime minister on the flat purchase but insisted it had done nothing wrong.
Joanna Verrico, the managing director, told The Telegraph: “We acted for Ms Rayner when she purchased the flat in Hove. We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for.
“The stamp duty for the Hove flat was calculated using HMRC’s own online calculator, based on the figures and the information provided by Ms Rayner. That’s what we used, and it told us we had to pay £30,000 based on the information provided to us.
“We believe that we did everything correctly and in good faith. Everything was exactly as it should be.
“We probably are being made scapegoats for all this, and I have got the arrows stuck in my back to show it. We are not an inexperienced firm, but we’re not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these.”
Political opponents have clamoured for Ms Rayner’s resignation, as the ministerial ethics adviser, Sir Laurie Magnus, investigates. The outcome is likely to decide her political future.
Prime minister Sir Keir Starmer said he would “act on” the conclusions of the investigation and refused to say whether he would sack her if she was found to have breached the ministerial code.
“I am expecting a result pretty quickly. I do want it to be comprehensive, as you’d expect,” he said. “And then, of course, I will act on whatever the report is that’s put in front of me.”
He added: “I want to let that process take its course. I did strengthen that process, so she’s done the right thing, referred to the independent adviser, and now he will do his work and report back to me.”
Graffiti branding Ms Rayner a “tax evader” was daubed on walls outside her Hove flat on Thursday.
A spokesperson for the Council for Licensed Conveyancers, which regulates such firms, said it had asked Verrico & Associates for a full account of events.
“They are not licensed to provide tax advice. What they are licensed to do is to provide conveyancing advice, and they are regulated to the highest standards,” they told The Telegraph.
When admitting her underpayment, Ms Rayner, who is also the housing secretary, had said: “When purchasing the property, my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.
“However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions.”
She said complex provisions over a trust for her son gave rise to the extra stamp duty liabilities.
“I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.”
Verrico is a licensed conveyancing firm that focuses on property buying and selling.
