If that is correct, then Mr Rayner could not have applied for private residence relief (PRR) – the kind of tax relief that means you do not pay capital gains tax on the sale of a house if it was your only home – for some of the time he owned the property.
If it is not correct, and, as neighbours have claimed, Ms Rayner was living at Lowndes Lane with her husband, then she would not have been entitled to PRR.
Married couples cannot legally have two primary residences for tax purposes.
Tax experts have told The Telegraph that if Mr Rayner was liable to pay capital gains tax, the bill would depend on factors such as income, renovations and estate agent fees, but would likely only be about £500.
Documents seen by The Telegraph also show that Mr Rayner purchased his property in 1991 for a price of £11,000 through the right to buy scheme, which gave him a discount of £16,800.
He sold the property in April 2016 for £145,250. A month later, he, his wife and their children moved into another property in Ashton under Lyne.
Police to ‘get to the bottom of what happened’
The questions surrounding the sale of Mr Rayner’s property are relevant as Ms Rayner has yet to respond to questions about whether she paid capital gains tax on the sale of her own house.
Neighbours of Ms Rayner have repeatedly rejected her claim that she lived at Vicarage Road and say she lived with her husband and their children “full-time from about 2009 or 2010”.
The couple, who have two children together, separated in 2020.
Greater Manchester Police are understood to have spoken to neighbours about her living arrangements.
Stephen Watson, the chief constable of Greater Manchester Police, has promised to “get to the bottom of what happened” and officers are investigating what offences may have been committed.
In a previous statement, Ms Rayner said she was “completely confident” that she had followed the rules at all times but said she would resign if she was found to have committed a criminal offence.
Mr Rayner has been approached for comment.
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
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