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Lawyers for the Deputy Prime Minister Angela Rayner have denied ever giving her tax advice over her second home.
Rayner has faced calls to resign or to be sacked after she admitted on Wednesday that she underpaid stamp duty tax on her £800,000 seaside flat in Hove, East Sussex.
The deputy PM, who is also the Housing Secretary, said the ‘error’ was due to incorrect ‘advice from lawyers,’ which led her to pay the standard rate of stamp duty.
Reports claim she saved up to £40,000 in stamp duty tax.
Now the conveyancer used by Rayner has said its lawyers ‘never’ gave her tax advice.
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Joanna Verrico, the managing director of Verrico and Associates, a small high street company based in Herne Bay, Kent, said they are being made ‘scapegoats for all this.’
She said: ‘We’re not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these.
‘We believe that we did everything correctly and in good faith. Everything was exactly as it should be.
‘We probably are being made scapegoats for all this.’
It comes after a source close to Rayner said a conveyancer and two experts in trust law had suggested the amount of stamp duty was correct and she acted on the advice she received at the time.
Verrico, who is the founder of the firm, told The Telegraph that the company acted for Rayner for the purchase of the flat, but it did not and never has given tax or trust advice.
She said: ‘The stamp duty for the Hove flat was calculated using HMRC’s own online calculator, based on the figures and the information provided by Ms Rayner.
‘That’s what we used, and it told us we had to pay £30,000 based on the information provided to us. We believe that we did everything correctly and in good faith. Everything was exactly as it should be.
‘We probably are being made scapegoats for all this, and I have got the arrows stuck in my back to show it. We are not an inexperienced firm, but we’re not qualified to give advice on trust and tax matters, and we advise clients to seek expert advice on these.’
Rayner said on Wednesday she had referred herself to the Prime Minister’s ethics advisor for an investigation after the admission. It is expected to decide later on today if she broke ministerial rules.
Conservative leader Kemi Badenoch stating: ‘This is more damning evidence that Angela Rayner has not been honest with the British public’ and that ‘enough is enough.
‘How many final straws can there be for Angela Rayner? She must resign or Keir Starmer must finally find the backbone to sack her.’
Sir Keir Starmer insisted in the House of Commons on Wednesday he is ‘proud’ to be standing alongside Rayner.
He told the BBC in an interview yesterday: ‘There’s a clear procedure. I strengthened that procedure. I am expecting a result pretty quickly.
‘I do want it to be comprehensive … and then of course I will act on whatever the report is that’s put in front of me.’
Supporters have also rallied around Rayner as the row escalates.
Chancellor Rachel Reeves said she has ‘full confidence’ in her colleague after the ‘mistake.’
‘She’s a good friend and a colleague she has accepted the right stamp duty wasn’t paid,’ she said.
‘That was an error, that was a mistake. She is working hard now to rectify that, in contact with HMRC to make sure that the correct tax is paid.’
Yesterday, police launched an investigation after the seaside property at the centre of the controversy was targeted by vandals.
Graffiti appeared on the wall outside Rayner’s Hove apartment near Brighton, with the words ‘b****’ and ‘tax evader’ sprayed on it.
Full statement from Angela Rayner
Here is the statement the deputy Prime Minister issued on Wednesday:
‘When purchasing the property my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.
‘However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions.
‘I have now been advised that although I did not own any other property at the time of the purchase, the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities.
‘I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.
‘The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce and the complexities of ensuring your children’s long-term security. Every decision I have made has been guided by what I believe to be in my children’s best interests.
‘I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands. It is for that reason I have today referred myself to the independent adviser on ministerial standards, and will provide him with my fullest cooperation and access to all the information he requires.’
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