That was me, Whitewavemark2. A while back, I deleted my account in order to take a break. On re-joining, I was told you cannot re-use a former username.
I wasn’t never involved much with SDLT. The higher rate for SDLT was only introduced on 1 April 2016. I was working in a very different specialism by that time.
However, I can read and understand very complex legislation and can find my way around the online HMRC manuals. I’ve already posted my take on what has happened upthread.
In theory, this should all have come to light eventually once Rayner had submitted her 2024/25 and 2025/26 tax returns, but the online deadlines for those are not until 31 January 2026 and 31 January 2027 respectively.
In a perverse way, the media furore have done her a favour in allowing her to address this matter sooner, at least saving her some interest on late payment of SDLT. If she pays up now, she’ll probably be charged around £1,200 in interest (charged at 4 points over base rate so currently 8%). If it hadn’t come to light until after 31 January 2027, she’d be paying a lot more and would also have missed the deadline for correcting an error in a SLDT return. The time linit for that is 12 months after the 14 day filing deadline after the transaction,. That would ahve been mid May 2025 so May 2026 in this case. There may also be a penalty for carelessness.
Small compensation for the amount of damage this may have done to her career. It looks like we may find out later today.
If she had a decent tax accountant who is conversant with her financial affairs this should not have happened had she taken advice. I would be surprised if a competent professional had steered her wrongly on this but queries do sometimes get pushed to junior, less experienced members of staff and wrong advice is given.
Even if not a specialist, a qualified tax accountant should have a good working knowledge of trusts including the legislation pertaining to assets held in trust for minors.
That’s the big x factor in this. Was she advised correctly about how the trust property meant she had to pay higher rate SDLT, but either didn’t understand what she was told or chose to ignore it, so ended up telling the conveyancers who completed the SDLT1 that she only owned one property.
In her favour, she is taking steps to rectify this well within the time limits allowed and well ahead of when she has to file online tax returns.