What to know about stamp duty and how to avoid falling foul of the rules
Deputy Prime Minister Angela Rayner has disclosed she underpaid stamp duty on a seaside flat, prompting one tax expert to label the property levy a “confusing mess”. Ms Rayner’s admission follows mounting pressure and media reports claiming she saved £40,000 on the Hove property by removing her name from the deeds of a family home in her Ashton-under-Lyne constituency.Ms Rayner said she bought the Hove flat after selling her stake in another home to her son’s trust. She maintained she initially believed, based on legal advice, she was liable for the standard rate of stamp duty. However, she was later advised that, despite not owning any other property at the time of the purchase, “complex provisions relating to the trust gives rise to additional stamp duty liabilities”.The incident highlights the intricate nature of stamp duty, which applies in “slabs”, with home buyers paying increasing portions of the property price when purchasing a residential property.Stamp duty is charged in England and Northern Ireland. Scotland and Wales apply separate property taxes.Deputy Prime Minister Angela Rayner More