The debate over former deputy prime minister Angela Rayner’s tax arrangements demonstrated that there are few topics more complex than the law of trusts. It was politically awkward, to say the least, when a deputy PM and housing secretary had to admit getting it wrong, and underpaying £40,000 in stamp duty.
Rayner has resigned after being found to have breached the ministerial code in the wake of the stamp duty row. That erupted after she was said to have put her share of her constituency home in Greater Manchester in trust for her son, and to have bought another home in Hove, East Sussex, paying a lower rate of stamp duty than should be owed by a second homeowner.
In Rayner’s case, a probable oversight and a trust created with legitimate intentions got caught up in legislation designed to discourage tax avoidance and ownership of a second home. Of course, it also left her open to accusations of hypocrisy, as a member of a government that championed higher taxes for second homeowners.
