Angela Rayner has admitted underpaying stamp duty on the £800,000 Hove seafront flat at the centre of a sleaze inquiry after using money from a trust set up for her disabled son to fund the purchase.

Last night The Telegraph reported that the Deputy Prime Minister and housing chief sold a 25% share of her Ashton-under-Lyne home to the trust in January for £162,500.

The trust had been created following a 2020 compensation award linked to her son’s premature birth and lifelong disabilities. She then used the proceeds as a deposit on the Hove property, taking out a £650,000 mortgage.

FLAWED LEGAL ADVICE

However, Rayner paid £30,000 in stamp duty, rather than the £70,000 required for a second home.

Having previously insisted she paid the correct tax, she now concedes she relied on flawed legal advice.

Now, after consulting a leading tax barrister she has accepted liability and is working with HMRC to resolve the matter.

In a statement Rayner said her priority was ensuring her 17-year-old son retained “stability in the family home,” which has been adapted for his needs.

LEGAL BATTLE

The trust now owns 75% of the Ashton-under-Lyne property, with the remainder held by her ex-husband. She insisted the house remains her primary residence, where her children live and where she is registered for official purposes.

The compensation award followed an 11-year legal battle with the NHS over her son’s care at birth in 2008. He is registered blind and has special educational needs.

Rayner has referred herself to the Independent Adviser on Ministerial Standards, saying she “deeply regrets the error” but emphasised that all decisions were taken in her children’s best interests.

Stockport NHS Foundation Trust declined to comment on the compensation settlement.