Angela Rayner tax fail

[Iwishicouldflyhigh]

But it’s ok because she was just badly advised.
I’ll remember that excuse next time I fill in my tax return.

But still confused about one can have 2 main homes?

So can we all put our house in a trust to avoid IHT?

I had to pay the 3% stamp duty surcharge when I couldn't sell my old flat, didn't know it was avoidable tbh, I guess as housing secretary she knows all the loopholes.

She could have left her share of the house to her son in her will. Why use his money to ensure that she could start somewhere new with what seems to be a very precarious relationship. I presume Sam Tarry is the partner and that has been off and on.

Hmmmm. Was increasing her sons share of the house from 50% to 75% in his best interests.. that’s the interesting point in this..

Do you have a disabled child with a compensation payment and so specific needs to be accommodated?
Thought not

Yes it was

It will come down to the advice she got
If she got specialist advice and answered questions thoroughly she's fine ( and probably can sue), if not then that's her failing

Why

Nope. He already had the house, then the trust gave Rayner cash in exchange for a % of the house that was not really needed. The cash can be spent on carers or other services/goods that the son may need. Angela is still using the house as her main residence even though she’s sold it.

Sorry I don’t agree. It is not always that clear cut. I should know I was on the call to HMRC today finding out if I should pay second rate tax. When it’s your home you are replacing you should not and technically if the other house is in trust to her kids then the lines are blurred…. The governments own stamp calculator online is simple and only covers standard situations.

after speaking with HMRC today, I came off a 45min phone call none the wiser… they didn’t seem to know if I should pay second home tax or not either and my solicitor is defaulting to me… I can see how easy it is to screw this up…

I thought anyone could set up a trust for their children? Genuinely interested as well. Bet you tax advisors will be getting loads of requests from people wanting to do the same thing. In anycase, when you 'put' your house in a trust, normally i would assume the trust would need to pay stamp duty as well. As its considered a property sale.

@NoJamSlags
The injuries weren’t sustained at birth. She went into Labour at 23 weeks and her son was born weighing less than one pound.
He spent 6months in intensive care and at one point had a bleed on the brain. He wasn’t expected to survive and told three times he wouldnt. Something must have happened in those three months as Raynor and her ex husband spent 11years fighting for compensation from the hospital . That’s the trust money

You pay it if you own another property. If you sell your other property you get the second property tax back. But only if you sell within 3 years and declare your second purchase as your primary residence

Nevertheless you must pay it up front and claim it back if you sell the first property. You can’t not pay first.

Our conveyancer has always been able to tell us how much we needed to pay. No problems

Angela Rayners financial affairs are murky, let’s face it. If you look at her intentions they just aren’t good - trusts to avoid IHT, getting advice to minimise stamp duty, and let’s not forget her gifts scandal less than 12 months ago. All those designer clothes she ‘needed for work’.
She’s a classic out to get what she can type.
My main issue is the staggering hypocrisy. I’ve had to spend years listening to her uncouth, aggressive, non compromising criticisms of opposition politicians, often for much more minor issues, yet here she is, trying to play the “these past few days have been awful for my family…..and my disabled son” card. And no resignation, no apology.

She is often accused of being thick, that may be true but she definitely thinks we are all thick.

So far advisors have distanced themselves from Rayner in a statement. I doubt there is anyone who got it wrong bar Rayner. Which is a big lie there.

It really is not hard to work out what tax is required for house buying. Given she is the deputy PM and her intense objective to tax working people to death, it is unacceptable and the passing of the responsibility to someone is not on. We could all do this and use the excuse “but they told me to do it”. She needs to resign or firing.

I do wonder whether NHS should be fighting to save every premature baby. I have a friend who's kid was born at 24 weeks with lifelong disabilities, little quality of life and also has a compo trust. Her marriage also ended over the stess of it. Years ago these kids died and no lifelong care and no comp payable. I know you'll all think I'm evil for thinking this, nevermind saying it. I think we should save prem kids born with a viable chance of a normal life, but some of them don't have a viable chance and we save them anyway.

Aah so you recommend not getting specialist advice as its all easy and straight forward? Ok then

Even for you, thats a load of rubbish.

The trust is to protect her children after a divorce, set up by the court....you are accusing her advisors of tax evasion..... which is what evasion of SLDT is.

Lets all hope you are never asked to serve on a jury....

Gifts declared by MPs of any party are perfect legal and above board, we all know as they have been declared or is it rather that Tory gifts = Good, Labour Gifts = fraud.

“even for you”
that’s the sort of pathetic attack that is typical of your type of leftie

I’ve heard Angela Rayner do similar, I can see why you defend her - kindred spirits

I’m a lawyer. Her lawyers won’t have got this wrong if all the info was provided. She didn’t seek the correct advice - other than to make sure her iht was minimised. She is also housing minister. It’s literally her job to understand taxes related to housing.

Today we know she consulted three people. I do wonder if she consulted them in a professional capacity and paid for their advice or just talked to people she knew/worked with in a corridor

Agree. And with @flightissueno professional got this wrong.

’Three people’ could be the next door neighbour, whoever.

So she can put her house in a trust for the benefit of her disabled child because she wants to avoid that child paying inheritance tax so they can maintain the house with the adaptions or so they can use the money to pay for care, one would assume.

On the face of that iv got no problem with except for the fact that she is housing minister and she is always harping on about the terrible people who dont pay their required dues.

Your average person doesnt have the means to pay shoesmiths (her top toer lawyers) to put their estate in trusts and recommend the best trusts to use. So why is a labour minister doing this?

Yes, she has come out and admitted her error but only because of the hounding of the press. If this story hadn't been leaked she never would have 'identified' her error and wouldn't be paying the tax.

If a tory minister hadn't paid the tax, would she be at all sympathetic? Did she not call for Boris Johnston to quit because he had a small birthday party? She has at best accidently avoided paying £40k tax.

If this was a genuine mistake id have some sympathy but every step she has taken seems to go against the grain of what she seemingly stands for. She even claims this is her first high paying job, if thats the case how has she managed to save the deposit to buy an £800k flat in such a short time given that she is a one income household? Where is this £40k going to come from?

I dont this lightly but she is literally responsible for the housing rules, she should be sacked. If she doesnt understand the rules or think they are fair then what hope do the rest of us have?!

I thought this too. I was a lawyer - you just don’t get this sort of thing wrong.

The issue is she has form for this.

There was the issue with the use of a New York flat last year she used where she took her boyfriend (Sam Tarry) on a freebie and didn't declare it properly. She also accepted £3500 clothes from Lord Ali and didn't declare them. Goodness knows what else she may have done and it's under the radar.

The total picture is she avoids scrutiny until caught out.

For someone who has literally made a living out of her 'working class credentials' (and nothing much else) and 'standing up for the little people' it looks like she's only really interested in buttering her own bread.