Rayner, who also served as housing secretary and deputy leader of the Labour Party, confirmed her resignation in a letter on Friday, saying she takes “full responsibility for this error”.
The Labour MP for Ashton-under-Lyne was found to have underpaid £40,000 in stamp duty on an £800,000 flat in Hove, East Sussex.
She had declared the property as her main home rather than a second home, which reduced the tax due.
Earlier this week, she referred herself to the government’s independent ethics adviser, who concluded that while she acted in “good faith and with honesty”, she failed to meet the highest standards expected of ministers.
The report also noted that she “did not heed the caution” in legal advice received at the time of the purchase.
In her resignation statement, Rayner said: “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 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.”
She added that she “deeply regrets” not seeking specialist tax advice, especially given her government position and “complex personal situation”.
“I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount,” she wrote.
Rayner said her decision to resign was based both on the findings of the ethics report and the impact of the controversy on her family.
Rayner has served as deputy prime minister and housing secretary since Labour assumed control of government in 2024.
