Labour Deputy Leader has been informed she’ll face an investigation by Greater Manchester Police. Rayner has been accused of breaking electoral law by giving false information about her main residence, a claim she ferociously denies.
Row Over Housing
Former Tory peer Lord Ashcroft wrote an unauthorized biography about Rayner called ‘Red Queen’. In it, he alleges neighbours suggested she claimed she was living at an ex-council house she owned when, in fact, she was living with her husband, Mark.
Electoral Law at the Centre
The accusation is that she would be in breach of electoral law. If she wasn’t living there, she should not have been registered on the electoral roll.
Further Complications Regarding Addresses
The waters are muddied regarding her husband’s address. He was listed as living elsewhere, and Rayner had her two children’s births re-registered to this address.
Questions Have Arisen About Potential Capital Gains Tax
Rayner bought the house before she became an MP. When she sold the house in 2015, she made £48,500 profit. If she lived there as a primary residence, she wouldn’t have to pay capital gains tax.
Tax Would be Due on the Profits
If she did actually live with her husband, she’d be liable for up to £3,500 in tax. It’s unknown whether or not this tax was either due, or paid.
Rayner Comes Out Fighting
Angela Rayner said, “I’ve repeatedly said I would welcome the chance to sit down with the appropriate authorities, including the police and HMRC, to set out the facts and draw a line under this matter. I am completely confident I’ve followed the rules at all times.”
Keir Starmer Supporting Rayner
The Labour Leader said “I am fully confident that Angela Rayner has not broken the rules. She will cooperate with the investigation as you would expect and it is really a matter for the police.”
Mayors Coming Out in Support
London Mayor Sadiq Khan said “I fully support Angela Rayner, I’m confident that she’ll be vindicated in relation to the police investigation.”
Northern Support For Rayner
West Yorkshire Mayor Tracy Brabin said, “Angela Rayner has my full support and I am absolutely confident that she has complied with the rules. This investigation will give her the opportunity to set out the facts.”
Fresh Investigation Comes From Tory Pressure
James Daly, a Tory MP wasn’t happy with the investigation Greater Manchester Police performed in relation to the case. He’s unhappy with the way they looked into the issue of electoral law being broken.
Greater Manchester Police Confirmed Tory Request
A spokesman for GMP said: “We’re investigating whether any offences have been committed. This follows a reassessment of the information provided to us by Mr Daly.”
Where Will The Investigation Lead?
Right now it’s early days, so nobody is quite sure what to expect. The question will be whether or not Mrs Rayner has intentionally broken the law. The law is only broken if you intentionally and dishonestly avoid paying tax.
Rayner Claims She Took Tax Advice
In her corner is also the claim that she took tax advice. If she can prove she had appointed a specialist, it goes some way to proving she has not willfully avoided any tax she owed HMRC upon the house sale.
Which is the Lesser Evil?
With the accusations hitting two fronts, it smacks of the Tories knowing there’s not much of a case here, but they’re fishing in every pond, hoping for a bite.
GMP Investigating Electoral Law, Not Tax
It’s important to remember that the police aren’t investigating Rayner’s tax affairs, only the accusation of breaking Electoral Law. From a PR point of view, Labour will want to reassure the public there’s no tax avoidance under police investigation.
Labour Accusing Tories of Smear Tactics
Several Labour supporters are claiming this is nothing more than a Tory attempt to smear Rayner in the run up to an election. The timing would certainly appear that way, given we’re talking about a house sold nearly 10 years ago.
Ashcroft Attacked For ‘Double Standards’
It has emerged that Lord Ashcroft, the author of the book accusing Rayner, held non-dom status for years after he was supposed to have relinquished it. It would allow him to avoid paying UK tax on overseas earnings.
Tories Need to be Careful
Attacking Rayner on a tax front might not be the best strategy for the Tories, given their own tax issues. Rishi Sunak’s wife held non-dom status for years, and Nadhim Zahawi faced pressure regarding offshore investments only last year. Tories and tax is a complicated tale.
Tories Need to Fight Cleanly If They Want to Avoid Embarrassment
If they don’t want the investigative powers of the world’s media turning on them, the Tories might be wise to fight a cleaner fight in the run-up to this election. There’s likely to be plenty of skeletons in their own closet.
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