Lessons from the Angela Rayner Trust Case
Trusts are a legitimate and widely used tool in estate planning. They can safeguard family wealth, provide for children until they reach maturity, and protect assets from risks such as divorce or bankruptcy. Trusts are also used to manage compensation payments, for example, following medical negligence, ensuring funds are available to meet the lifelong needs of the injured party.
But as the recent case of Angela Rayner has shown, even with multiple legal advisers involved, mistakes can be made.
In 2020, a trust was set up for the benefit of Rayner’s son following a medical negligence payout. In 2023, Rayner and her then-husband transferred half their home into the trust, valued at £650,000. Each retained a 25% share, with Rayner later selling her share into the trust. On the surface, this looked like careful estate planning: protecting her son’s long-term needs and reducing potential inheritance tax (IHT).
The controversy arose not from the trust itself, but from the calculation of stamp duty land tax (SDLT) on Rayner’s new property in Hove. Rayner claimed she did not own another property at the time. While technically true, the rules on trusts meant that because the trust was for her minor child, she was still deemed to own an interest in the property. This resulted in underpayment of SDLT, despite consultation with solicitors.
This case underlines a key point: tax law is complex, and trusts introduce an additional layer of rules that can easily be misunderstood. Even with good legal advice, the tax consequences can be overlooked.
Without high-quality tax advice:
- You risk unexpected liabilities to HMRC
- A legitimate planning structure could backfire
- Your family’s long-term protection may be undermined.
The lesson is clear: when you are making significant financial arrangements such as creating trusts, transferring property, or entering into complex transactions, you need specialist tax advice from professionals who understand both the legal and tax frameworks.
At Botham Accounting, we have one of the most experienced private client tax teams in the region. We advise clients across the UK on estate planning, trusts, inheritance tax, and capital gains tax.
Meet Nick Giles – Trusts & Estates Specialist
Nick Giles is a Chartered Tax Adviser and recognised expert in trusts and estates. He advises clients nationwide on structuring their affairs efficiently, balancing family needs with compliance obligations. Nick works with families, business owners, and professional trustees to deliver clear, practical strategies that protect wealth for future generations.
