National law firm confirms it did not advise deputy PM on £800k flat stamp duty error
Shoosmiths has moved to distance itself from the political row surrounding deputy prime minister Angela Rayner, after its name was wrongly linked to her £800,000 flat purchase that resulted in underpaid stamp duty.
The national law firm had previously acted for Rayner, and the BBC News reports it was responsible for setting up a trust for her son in 2020. This past connection fuelled speculation online that Shoosmiths had also advised on her property deal.
But the firm has now confirmed it gave no advice on the flat purchase that saw Rayner pay up to £40,000 less by not applying the higher rate of stamp duty reserved for additional homes.
A spokesperson for Shoosmiths said:
“We did not act for the Rt Hon Angela Rayner in relation to the purchase of her Hove property and/or the SDLT aspects of that property. Ms Rayner is not a current client of the firm and has not been for some time.”
Rayner is facing calls to resign over the matter. The Labour MP has rejected claims she deliberately avoided tax, saying she relied on legal advice that did not “properly take account” of her circumstances.
Those circumstances include the court-ordered trust, created to manage compensation following a medical incident that left her son with life-long disabilities.
When her divorce was finalised in 2023, Rayner and her ex-husband transferred part of their stakes in the family home in Greater Manchester into the trust, where they both act as trustees.
This arrangement allowed for a “nesting” set-up, meaning the children could remain in the property while the parents alternated living there. Rayner later sold her remaining 25% stake in the home to the trust in January this year, receiving £162,500.
Rayner said she has contacted HMRC to clarify how much tax she owes.
The identity of the lawyer or firm she consulted is still unknown.
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