Former Deputy Prime Minister Angela Rayner announced that an HM Revenue and Customs (HMRC) investigation into her tax affairs has cleared her of deliberate wrongdoing or tax avoidance. 

This update follows a major controversy that led to her resignation from the cabinet; in a statement on Thursday, she addressed the tax dispute directly to clear her name.

Rayner stepped down from her roles as Deputy Prime Minister and Housing Secretary in September 2025. Her resignation followed an admission that she had underpaid stamp duty on her £800,000 flat located in Hove. 

Rayner is currently viewed as a possible successor or challenger to Sir Keir Starmer, whose leadership is under pressure after poor local election results for the Labour Party.

In a recent interview, Rayner declined to rule out a future leadership bid, though she clarified that she would not be the one to proactively initiate a contest against Starmer.

She said: “I'll play my part in doing everything we possibly can to deliver the change, because it's not a personal ambition, I know the difference it makes."

The story was originally broken by The Guardian and ITV News on Thursday morning. Reflecting on the tax controversy, Rayner acknowledged that the situation negatively impacted her public image. 

She expressed concern that voters believe she was either intentionally avoiding taxes, or at the very least, being reckless and careless with her financial responsibilities.

“Whereas now hopefully people can see that actually it's a really complex area of law," she said.

In her statement Rayner said: “I have always sought to act with integrity, and I believe politicians should be held to high standards - that is why I resigned from government and cooperated fully with HMRC.”

Angela Rayner noted that HMRC concluded there was no evidence of wrongdoing or intentional tax avoidance, nor did they find her to be careless. 

The Prime Minister’s ethics adviser confirmed that Rayner “acted with integrity,” yet ultimately found her in breach of the ministerial code. 

While Rayner did seek legal advice during the property purchase, the breach occurred because she failed to obtain the additional expert tax advice that had been recommended to her.

On Thursday morning, the former deputy prime minister said: “I set out to pay the correct amount of tax. I took reasonable care and acted in good faith, based on the expert advice I received, and HMRC has accepted this.”

She added: “I wanted to ensure that I paid every penny that I owed and have done so. I am relieved that my family can now move on - and that I can get on with my job.”

'I've been exonerated': Angela Rayner says HMRC has cleared her over flat stamp duty.

Rayner’s team originally maintained that her tax payments were correct, but they eventually sought a senior lawyer's opinion following intense media scrutiny. 

Rayner admitted to the underpayment, citing a belief that the Hove flat was her only property. Because of complex trust arrangements involving her disabled son, the Hove flat was legally classified as a second home. This status triggered an additional £40,000 in Stamp Duty Land Tax.