Let’s be clear, it’s Rayner herself that coined the phrase ‘dodged tax’ to apply to perfectly legitimate tax planning tools. Most of what she has used are legitimate tax planning g tools. Tools that she was vehemently against in opposition.
She could have given her share to the children, but there is a huge tax implication if she (as she claims) calls it her primary residence. As that’s a gift with reservation and is ignored for IHT purposes. The seven year rule would not apply. Even if she doesn’t call it her primary residence, the children are subject to CGT on its increase in value. In a trust they are not. Or rather, the trust pays tax in 10 year slices. But to be clear, in opposition she was against these tax planning tools and so, by her own definition, it’s a dodge.
In summary, using her own definition, she has dodged IHT by using a trust to shelter capital for her children. She has used a trust to dodge stamp duty on behalf of her children, who otherwise would have to pay stamp duty when they purchase a property in the future. She’s used a trust to dodge CGT for her children who would otherwise have paid that had her share of the property been transferred to them instead of into a trust.
To be clear, all of the above is legitimate tax planning. It’s just that she decided, in opposition, that use of such tools was dodging tax. You reap what you sow.
Then there is the matter of council tax. It appears as if for parliamentary expenses purposes her primary residence is in Manchester somewhere. For capital gains tax purposes her primary residence is in Brighton. And for work purposes her primary residence is in London.
She doesn’t own or occupy a property in her constituency, so she should she paying council tax in London and in Brighton. She’s paying the correct amount in Brighton, and nothing in London.
I’m not sure it could be any clearer.