A conveyancer used by Angela Rayner to buy a flat she has since admitted underpaying stamp duty on has denied giving her tax advice, as Sir Keir Starmer declined to say whether he will sack his deputy if she is found to have broken the ministerial code.
The Deputy Prime Minister has said incorrect “advice from lawyers” led her to pay too little tax when she purchased the property in Hove this year.
Sources close to Ms Rayner said a conveyancer and two experts in trust law had all suggested the amount of stamp duty she paid on the property was correct and she acted on the advice she was given at the time.
But the conveyancing firm, Verrico and Associates, on Thursday said its lawyers “never” gave Ms Rayner tax advice and were being made “scapegoats”.
In a statement reported by media, managing director Joanna Verrico said: “We’re not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these.”
She added: “We probably are being made scapegoats for all this.”
Meanwhile, the Prime Minister said “of course” he will act on the findings of his independent standards adviser looking into whether Ms Rayner broke ministerial rules.
But Sir Keir would not be drawn on whether he would fire his deputy, who is also the Housing Secretary, if Sir Laurie Magnus concludes that a breach occurred.
Ms Rayner referred herself for an ethics investigation on Wednesday, admitting that she had made a “mistake” after receiving fresh legal advice that she was liable for the extra duty.
She had been under mounting pressure after reports emerged she had saved £40,000 in stamp duty on the seaside property by not paying the higher rate reserved for additional home purchases.
In an interview with the BBC, Sir Keir said: “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.”
Sir Keir and his Cabinet have rallied round the Deputy Prime Minister amid Opposition calls for her to resign over the error, with the Prime Minister and Chancellor Rachel Reeves both expressing “full confidence” in her.
The Prime Minister, who vociferously defended Ms Rayner on Monday, has faced questions over when he was informed that she had sought additional legal advice, which came to the conclusion that she should have paid more tax.
He told the BBC: “I knew on Monday that she’d taken advice previously when she did the conveyance, and she was taking further advice, but the actual advice came through on Wednesday morning.”
