This is all geting a bit muddled as there are two threads running on the same subject but Iāll post this here.
I think itās becoming clearer what happened. Itās been revealed that Rayner used a firm of Licenced Conveyancers (not solicitors) in Herne Bay to deal with the Hove apartment purchase. They competed the SDLT1 on her behalf based on what she told them.
thenegotiator.co.uk/news/regulation-law-news/angela-rayners-conveyancers-deny-giving-tax-advice-report/
She didnāt, at the time, understand that her fomer share in the Ashton property, although now in trust, was still deemed hers for SDLT purposes because her son is still under 18. Itās all gone wrong from there.
If one looks at the guidance for completing the SDLT1:
www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return/guide-for-completing-paper-sdlt1-returns
Question 1 Residential ā additional properties: Is where the purchase of a residential property results in you owning more than one residential property ā¦
If someone starts from the premise that they donāt own two properties, then they are unlikely to proceed to the notes which explain about higher rates of SDLT for additional residential properties.
Had she read the notes - which discuss buying on behalf of a trust where a beneficiary is under 18 - something might have clicked about the implications of giving part and selling part of a property to a trust in which her minor son is a beneficiary.
I can genuinely see how this error occurred but I would have hoped that a senior Government Minister would have been more thorough in her attention to this. IMO, as more facts have emerged, I do think she has been careless and HMRC may well impose a penalty on top of the additional tax and interest on late payment to reflect that.
Is it enough to make her lose her job? I donāt think so but I do think it's embarrassing for all concerned. I canāt see any deliberate breaches of Nolan. People are fallible. I think itās unfair to have expected her to be an expert in these matters. What I would have expected is that she employ professionals and use them better: an efficent PA, a good solicitor and tax accountant at the very least, people who are familiar with her financial and legal affairs, not just employed for one-off transactions. Working at a senior level requires delegation. She should know to ask someone to research the legal and financial position on something and expect them to do a thorough job. Rayner knows she is constantly under the microscope and any slip will be pounced upon by her detractors. She should have been more careful.
What started as a story about the alleged hypocrisy of owning a holiday home has turned into a story about a Ministerās carelessness over a tax return. But this is a very different situation to Nadhim Zahawiās, not just in the sum involved but in that he had failed to declare that he had been under investigation by HMRC for some time over the YouGov shares he had put in an offshore account. In that respect he definitely did breach Nolan.
www.bbc.co.uk/news/business-68999222