Angela Rayner Faces Questions Over Tax Arrangements
Deputy Labour leader Angela Rayner is under scrutiny regarding her tax arrangements concerning the sale of her former council house. Rayner has refuted any allegations of misconduct and has declined to disclose her personal tax advice on the matter.
Background of the Issue
The controversy revolves around the sale of Rayner’s ex-council house in Stockport, Greater Manchester, where she is accused of evading capital gains tax following its sale in 2015. The claims surfaced in the biography ‘Red Queen’ by Lord Ashcroft.
Understanding Capital Gains Tax
Capital gains tax is levied on the profit gained from selling an asset that has appreciated in value. The tax is imposed on the increase in value rather than the total sale amount. Exceptions apply when selling a primary residence, with specific rules for married couples and civil partners.
Details of Rayner’s Property Sale
Rayner’s property on Vicarage Road was purchased for £79,000 in 2007 and sold for £127,500 in March 2015, resulting in a gain of £48,500. The property was considered her main residence, exempting it from capital gains tax. However, there are allegations that she primarily resided at a different address during part of this period.
Rayner’s Response
Rayner has denied any wrongdoing and expressed willingness to provide her tax advice to investigating authorities. She insisted on a level playing field, suggesting that Conservative ministers should also disclose their tax affairs.
Police Involvement
Greater Manchester Police are reevaluating their decision not to investigate the allegations against Rayner, including concerns about the accuracy of information provided by her regarding the electoral roll.
Support from Labour Leader
Labour leader Keir Starmer has voiced his support for Rayner amidst the controversy, emphasizing their collaboration to lead the Labour Party back into government.