Angela Rayner says she has been cleared of any deliberate wrongdoing relating to tax on her Hove flat.
The former Deputy Prime Minister announced she had been exonerated by HM Revenue and Customs (HMRC) following an investigation into her underpayment of stamp duty on an £800,000 flat in Hove, which she bought in May 2025.
The clearance potentially paves the way for a future leadership bid within the Labour Party.
Ms Rayner said: "I have been exonerated by HMRC of the accusation I deliberately sought to avoid tax.
"They've said that there wasn't any wrongdoing and that I didn't try to avoid paying tax or I wasn't careless in the way in which I conducted myself at the time when I was in government."
The MP for Ashton-under-Lyne resigned from government last September after confirming she had underpaid stamp duty.
She settled the outstanding £40,000 bill without facing a financial penalty.
Ms Rayner had declared the property as her primary residence after transferring her interest in her family home in Ashton-under-Lyne to a trust for her disabled son.
However, a report in The Daily Telegraph later claimed she had saved around £40,000 in stamp duty by removing her name from the Greater Manchester property just weeks before purchasing the Hove flat.
Opponents argued that Ms Rayner remained liable for the higher rate of stamp duty reserved for second-home purchases, which would have amounted to £70,000.
On September 3, 2025, Ms Rayner publicly admitted the underpayment, citing new legal advice from a "leading tax counsel" as the reason.
She explained that she had only been able to discuss the details after a court order restricting information about her son's trust was lifted the night before.
Sir Laurie Magnus, the government’s Independent Adviser on Ministerial Standards, concluded that Ms Rayner had breached the Ministerial Code, noting that she had not upheld the "highest possible standards of proper conduct."
Despite this, he commended her "integrity" and "full and open cooperation" throughout the investigation, and found that she had acted with "exemplary commitment to public service".
Ms Rayner resigned as Deputy Prime Minister, Housing Secretary, and Deputy Leader of the Labour Party shortly after.
The latest development potentially paves the way for Ms Rayner to challenge Sir Keir Starmer for the leadership of the Labour Party.
Amid ongoing speculation about Sir Keir Starmer’s leadership, she confirmed that she would consider entering a leadership contest but insisted she would not seek to "trigger" one herself.
Ms Rayner said: "I’ll play my part in doing everything we possibly can to deliver the change, because it’s not a personal ambition, I know the difference it makes."
She also said that Sir Keir should "reflect on" his position after poor local election results that have fuelled doubts about his future as Prime Minister.
Reports suggest that Health Secretary Wes Streeting may be preparing to resign in order to launch a leadership challenge.
Ms Rayner said Streeting would need to "justify his actions."
Ms Rayner said: "I do understand my colleagues and why they’re angry and upset.
"I do understand why we’re having this conversation now, but we need to get through that as quickly as possible."
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Talk of removing Sir Keir appeared to have lost momentum by Wednesday, with no additional ministerial resignations or fresh backbench demands for his departure.
Labour’s trade union supporters withdrew their backing for the Prime Minister earlier in the day, while Mr Streeting’s team did not deny rumours that he was set to resign.
Any formal leadership challenge would require the support of 81 Labour MPs.
Although 87 MPs have publicly called for Sir Keir’s resignation, no single candidate has emerged as the clear favourite to succeed him.
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