By Isle of Wight Observer
In a headline-grabbing twist this September, Deputy Prime Minister, Angela Rayner, resigned after revelations of a £40,000 underpayment in Stamp Duty Land Tax (SDLT) on her £800,000 flat in Hove. The case has sparked widespread debate, not just about political accountability, but about the role of conveyancers and the importance of specialist tax advice in property transactions.
What went wrong?
Angela Rayner paid £30,000 in stamp duty, assuming the flat was her sole residence. However, due to a trust arrangement involving her son’s home, set up to manage compensation following a serious medical incident, the Hove property should have been classified as a second home. That classification would have resulted in a higher SDLT bill of £70,000.
Angela Rayner states she relied on legal advice at the time, but later, after consulting a tax counsel, accepted that she had not paid the correct amount. The conveyancing firm involved, Verrico & Associates, has publicly stated it did not provide tax or trust advice and calculated SDLT solely based on the information Angela Rayner provided.
The role of conveyancers – what you need to know:
At Biscoes, we understand how easy it is for clients to assume conveyancers handle every aspect of a property transaction – including tax. But this case is a stark reminder of our role’s limits.
What conveyancers do:
– Calculate SDLT using HMRC guidelines and online calculators based on information provided by you.
– Apply reliefs if clients explicitly inform us they’re eligible.
– Submit SDLT returns and payments to HMRC within the legal timeframe.
What conveyancers don’t do:
– Advise on complex tax scenarios, trusts, or ownership structures.
– Determine eligibility for SDLT reliefs or exemptions.
– Provide tax planning advice.
SDLT is a self-assessment tax, which means you, the buyer, are ultimately responsible for the accuracy of the return submitted and paying the correct amount of tax. If your situation involves trusts, multiple properties, or any degree of complexity, we highly recommend seeking independent tax advice.
Need help with your property transaction? Contact our conveyancing team today on 01983 533938 to ensure your next move is legally sound and financially secure.