Tax experts are warning that politicians are being treated differently to the general public after Angela Rayner was cleared by HMRC over a Stamp Duty bill.

The former Deputy Prime Minister and Housing Secretary is now the second favourite to become the next PM after revealing HMRC planned to take no action against her.

Now, leading tax advisory firm Blick Rothenberg has reacted to the news by saying “ordinary taxpayers should not be held to a higher standard than our politicians”.

Carelessness

Sean Drury, Head of Tax at Blick Rothenberg (pictured), says: “Angela Rayner’s declaration that she has been ‘cleared’ would indicate that HMRC concluded no penalty was due in respect of the well-publicised issues to do with Stamp Duty Land Tax.

“This is surprising, as it is unclear why she was not regarded as having failed to take reasonable care given HMRC’s own guidelines on what counts as ‘carelessness,” he says.

Politicians should not be held to a lower standard than ordinary taxpayers are by HMRC.”

“Politicians should not be held to a lower standard than ordinary taxpayers are by HMRC in this regard.”

He adds: “There should be a review of the entire penalty regime which has rapidly moved to being a form of ‘taxation on genuine mistakes.’”

Resignation

Rayner stood down from the Cabinet in September after admitting newspaper claims that she had underpaid the tax on a new flat.

She declared the flat in Hove, East Sussex, as her main residence even though she also had a family home in Ashton-Under-Lyne near Manchester, where her children live.

The Stamp Duty bill on the flat rose from £30,000 to £70,000, leaving her with a bill for £40,000 to pay.

Dan Neidle, Founder of Tax Policy Associates, said: “Her [Angela Rayner] statement says HMRC have concluded [it] isn’t careless and are not charging a penalty. And I can’t explain why that is.”

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