Rayner – the Housing Minister – was advised by two sets of lawyers to take tax advice on the purchase of her flat. She didn’t, and got the tax wrong by £40k in her favour.
HMRC have accepted that this wasn’t a ‘careless’ error – meaning there was no ‘failure to take reasonable care’. As such she is facing no penalties.
Having worked on numerous HMRC enquiries I find this is very surprising.
