Many people assume that if they only own one property and live in it at some point then they can take any capital gain on it tax free. That isn't the case in a number of circumstances e.g. if you marry someone who also owns a property. That seems to be the crux of this “controversy”.
I wonder how many property-owing grans here have married someone who also owned a property and knew that they needed to make a CGT declaration within two years as to which was to be their principle private residence for tax purposes.
It may be that the Rayners didn’t know either and assumed that each would be tax exempt on the one property each of them owned - or were badly advised by someone.
Let’s get this into perspective.
Rayner’s unpaid capital gains tax - at most £3,000 (if anything at all) pales into insignificance beside Nadhim Zahawi’s £5 million tax settlement over his You Gov/ Balshore Investments.
The settlement, made in December 2022 was reported to be £3.7 million in tax plus a 30% penalty of over £1 million. That level of penalty is the top end for carelessness (where HMRC only go back a maximum of six years) and bottom end for deliberate and concealed. The settlement relates to transactions going back to 2006. As I said above, in serious cases, HMRC can go back 20 years so the 30% must have been considered deliberate and concealed rather than careless.
Just to be clear, Zahawi had concealed capital gains of £27 million.
To quote Michael Gove, when he was doing the media round defending Zahawi:
My firm understanding is HMRC have no quibble with Nadhim. He’s paid everything that he should, and, people paying their taxes, that’s not a story – people not paying their taxes, yeah that is a problem.
Really? HMRC’s “quibble” was that Zahawi deliberately concealed capital gains of £27 million.
Note that Zahawi was under investigation for this not just by HMRC but by the National Crime Agency and the Serious Fraud Office. The Cabinet Office had raised a “red flag” about Zahawi’s tax affairs before his appointment as Chancellor on 5 July 2022. He was already under investigation for deliberate and concealed capital gains of £27 million but Johnson still put him in charge of the country’s finances.
In the great scheme of things, whatever Rayner is alleged to have done, it’s gnat’s piddle compared to this. Glass houses and stones come to mind and shows just how desperate the Tory party and right wing media are.