Angela Rayner faces sleaze investigation over 'tax dodge' controversy

The Conservative are calling on Angela Rayner to be investigated over her tax affairs after she avoided £40,000 in stamp duty on a second home. The Deputy Prime Minister, who is also the Housing Secretary, removed her name from the deeds of her Greater Manchester house just weeks before splurging on a new £800,000 flat in Hove, East Sussex, it is understood.

This allowed Ms Rayner to dodge the staggering £70,000 in stamp duty that the Labour minister would have had to pay, instead taking the bill down to £30,000, the Telegraph revealed. Conservative chairman Kevin Hollinrake has now written to the independent adviser on ministerial standards, Sir Laurie Magnus, calling for an investigation to see if the deputy PM broke ministerial rules.

The MP for Thirsk and Malton described Ms Rayner's tax move as "hypocritical tax avoidance, by a minister who supports higher taxes on family homes, high-value homes and second homes" in the letter.

While the arrangements are entirely legal, which Mr Hollinrake admitted, they have sparked questions over her “contradictory” statements about her residency.

As the Secretary of State for Housing, Communities and Local Government, Ms Rayner is the minister with responsibility for election law, as well as council tax.

On Thursday, Ms Rayner's spokesman repeatedly refused to reveal how much stamp duty she had paid on the Hove flat but denied any wrongdoing.

He said: "The Deputy Prime Minister paid the correct duty owed on the purchase, entirely properly and in line with all relevant requirements. Any suggestion otherwise is entirely without basis."

A Cabinet Office spokesman added that Ms Rayner "has followed advice on the allocation of her official residence at all times".

The Telegraph investigation also shows alterations are being made to the Land Registry on her constituency home in Ashton-under-Lyne, which have not yet been made public. The official register states: "Applications are pending in HM Land Registry, which have not been completed against this title."

The application is understood to have been submitted prior to Ms Rayner purchasing her Hove flat on May 1.

Sources close to Ms Rayner said her living arrangements were a result of her working in multiple locations - both as a constituency MP and as a secretary of state.

They acknowledged that the deputy PM does pay the second homes council tax premium on the Hove flat.