Rayner's stamp duty statement prompts conveyancing warning

A law firm has already distanced itself from Angela Rayner’s stamp duty scandal as the conveyancing sector came under an unwanted spotlight and prompted fresh warnings on advising on complex matters.

The deputy prime minister, who is also housing secretary, confirmed yesterday that she underpaid stamp duty on the purchase of a £800,000 flat in Hove.

Rayner told Sky News' Beth Rigby that she relied on advice she received that said she was liable to pay the standard stamp duty rate on the Hove purchase. Following media coverage on her living arrangements, she took expert counsel’s advice to ensure everything had been done properly and told the initial advice she received was inaccurate because of a trust set up for her son, who has lifelong disabilities.

The Guardian’s policy editor Kiran Stacey posted on X that Shoosmiths confirmed it was not the firm that advised Rayner to pay the lower amount of stamp duty on her Hove flat. 

A spokesperson for Shoomiths said: 'We did not act for the Rt Hon Angela Rayner in relation to the purchase of her Hove property and/or the SDLT aspects of that property. Ms Rayner is not a current client of the firm and has not been for some time.'

Rayner’s statement has been the subject of much discussion within the conveyancing sector.

Solicitor Stephen Desmond, a conveyancing trainer, posted on LinkedIn that Rayner’s case was a reminder to conveyancers to take clear steps to make clients aware of the limits of their expertise and retainer. Desmond said non-routine or complex SDLT matters, especially involving trusts, should always be recommended to a specialist, with the client responsible if they choose not to seek that advice.

Rob Hailstone, founder of conveyancing body Bold Legal Group, said the saga raised questions including: which firm advised Rayner to pay the lower stamp duty rate; were they property tax experts; was the original legal team in possession of the full facts to offer the correct advice; and will the inaccurate advice be published so the public can see how the deputy prime minister was misadvised.

Stamp duty adviser Sean Randall told the Gazette the key question is: did Rayner act reasonably by relying on advice.

Rayner would need to show that it was reasonable for her to rely on the advice, Randall said. 'It’s wrong to infer that the technical issue is so complicated that only a senior tax counsel would have spotted this. However, it’s true to say that this would not have been front of mind of a residential property lawyer.

'In practice, this case illustrates what a precarious position conveyancers are in. They need to rely on their intuition to identify when a buyer should seek specialist tax advice.'

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