Deputy Prime Minister's Constituency Home Valued at Threshold for Inheritance Tax

Strategic Insights -

Deputy Prime Minister Angela Rayner's constituency home was placed in a trust using a wealth protection firm, with its value set at exactly the threshold for inheritance tax. This has raised questions about whether she paid the correct amount of stamp duty on her new flat in Hove, East Sussex. Rayner has denied any wrongdoing, stating that she paid the relevant duty on the purchase of the flat and claiming that any suggestion otherwise is without basis.

Key Takeaways:

  • Angela Rayner's constituency home in Ashton-under-Lyne, Greater Manchester, was valued at £650,000, the maximum amount allowed before inheritance tax becomes payable.
  • The home was placed in a trust administered by the law firm Shoosmiths Trust Corporation in 2023, after Rayner and her ex-husband split the ownership.
  • According to HMRC rules, gifts to discretionary trusts are liable for inheritance tax to be paid on the date of the transfer if the value is greater than the tax threshold.
  • Inheritance tax thresholds are currently £325,000 per person or £650,000 for two people.
  • Heather Powell, a partner at Blick Rothenberg, described valuing the property at £650,000 as a "remarkable coincidence".
  • Rayner's new flat in Hove, East Sussex, is 260 miles away from her constituency home, and she has promised to stand for re-election despite the distance.

Statistics:

  • The value of Angela Rayner's constituency home was £650,000.
  • The maximum amount allowed before inheritance tax becomes payable is £650,000 for two people or £325,000 per person.
  • Inheritance tax thresholds are currently £325,000 per person or £650,000 for two people.
  • Rayner's new flat in Hove, East Sussex, is 260 miles away from her constituency home.

Sources:

  • "The Times"
  • HMRC rules
  • Blick Rothenberg
  • Shoosmiths Trust Corporation
  • Angela Rayner's election pledge (page 7)