British Prime Minister Keir Starmer suffered a significant setback on Friday when his deputy Angela Rayner quit the government over incorrect tax payments on a property transaction.
She was found to have breached the ministerial code of ethics.
The government said Ms Rayner, who was deputy prime minister and housing minister, would leave her government and party posts.
Ms Rayner had claimed she made a mistake based on legal advice she received at the time. She said the advice was that she did not need to pay the higher stamp duty rate reserved for second home purchases when she bought a seaside flat on England's south coast.
She had said a conveyancer and two legal experts had all suggested the amount of the property purchase tax she paid on the home in Hove was correct. Following headlines about her tax affairs, she consulted a leading counsel, who found she was liable to pay a higher rate.
'Deeply regrettable'
Ms Rayner had referred herself to the government’s ethics adviser Sir Laurie Magnus who investigated the case and reported within 24 hours.
He stated that it was “deeply regrettable that the specific tax advice was not sought” and that she had breached the ministerial code.
Ms Rayner had failed to comply with the “overarching duty” on government ministers to “comply with the law and protect the integrity of public life”.
Sir Laurie said she had failed to meet the “highest possible standards of proper conduct”.
He said he believed she had acted in “good faith”, but that “the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves”.
In a letter published on Friday, Sir Laurie said: “She believed that she relied on the legal advice she had received, but unfortunately did not heed the caution contained within it, which acknowledged that it did not constitute expert tax advice and which suggested that expert advice be sought.”
It was with “deep regret”, he told the Prime Minister, that “I must advise you that in these circumstances, I consider the [ministerial] code to have been breached”.
In her resignation letter to Mr Starmer, Ms Rayner said she deeply regretted her “decision to not seek additional specialist tax advice” and took “full responsibility for this error”. She has also stepped down as deputy leader of the Labour Party.
She wrote: “I have long believed that people who serve the British public in government must always observe the highest standards, and while the independent adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase.
“I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount.”
Mr Starmer said Ms Rayner would “remain a major figure in our party” and “continue to fight for the causes you care so passionately about” despite her resignation.
Tory leader Kemi Badenoch criticised the Prime Minister for having waited for Ms Rayner’s resignation, saying her position had been “untenable for days”.
Reshuffle
It is understood a wider reshuffle of ministers will take now place. Losing the deputy prime minister is a major blow for Mr Starmer as he seeks to reset his government following a difficult summer dominated by criticism of the “small boats” immigration crisis and speculation about tax rises in the autumn budget.
Ms Rayner is popular among the Labour grassroots and is said to have played an important role in defusing the backbench revolt over proposed welfare cuts earlier this year.
She has been crucial to Mr Starmer's political project, overseeing the manifesto pledge to build 1.5 million homes as well as the flagship workers’ rights expansion, and being viewed as a bridge between No 10 and the wider party.
Scapegoat
Ms Rayner's attempts to defend herself had appeared to unravel when the conveyancing firm she used, Verrico and Associates, on Thursday said its lawyers “never” gave her tax advice and were being made “scapegoats”.
In a statement, 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.”
Experts said Ms Rayner's former marital home in Ashton-under-Lyne, Greater Manchester, was owned by a trust benefiting her disabled son.
The sale of her remaining 25 per cent stake did not cut all ties with the property in law. Thus she should have paid additional tax on the new property in Hove, as a second home.
Ian Dyall, head of estate planning at wealth management firm Evelyn Partners, said the tax treatment of property transferred into a trust depends on a range of factors and could remain part of a person's tax affairs.
“If the person who transfers the assets into trust continues to benefit from the use of the property, the property will remain part of their estate for inheritance tax,” he said.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
UAE currency: the story behind the money in your pockets
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
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Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
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MATCH INFO
New Zealand 176-8 (20 ovs)
England 155 (19.5 ovs)
New Zealand win by 21 runs
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
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Biography
Favourite Meal: Chicken Caesar salad
Hobbies: Travelling, going to the gym
Inspiration: Father, who was a captain in the UAE army
Favourite read: Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter
Favourite film: The Founder, about the establishment of McDonald's
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Opening weekend Premier League fixtures
Weekend of August 10-13
Arsenal v Manchester City
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Fulham v Crystal Palace
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Liverpool v West Ham United
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UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
The specs
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Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
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Asia Cup 2018 Qualifier
Sunday's results:
- UAE beat Malaysia by eight wickets
- Nepal beat Singapore by four wickets
- Oman v Hong Kong, no result
Tuesday fixtures:
- Malaysia v Singapore
- UAE v Oman
- Nepal v Hong Kong
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
The specs: 2019 Chevrolet Bolt EV
Price, base: Dh138,000 (estimate)
Engine: 60kWh battery
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Range: 520km (claimed)
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Thursday’s fixtures
6pm: Hyderabad Nawabs v Pakhtoon Warriors
10pm: Lahore Sikandars v Pakhtoon Blasters
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Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.
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All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.
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The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.
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Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Drishyam 2
Directed by: Jeethu Joseph
Starring: Mohanlal, Meena, Ansiba, Murali Gopy
Rating: 4 stars
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
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Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
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