Angela Rayner admits she did not pay enough tax and considered resigning over stamp duty underpayment on £800k second home

The bill she will pay could run up to as much as an extra £40,000.

Ms Rayner, who is also the Housing Secretary, claimed she received incorrect tax advice.

The Deputy Prime Minister came under scrutiny after The Daily Telegraph claimed she avoided £40,000 in stamp duty on her Hove flat by removing her name from the deeds of another property in Greater Manchester.

In a statement on Wednesday, Ms Rayner said it was a "complex living arrangement" due to her first home being sold to a trust after her divorce in a bid to provide stability to her teenage son who has lifelong disabilities.

Ms Rayner's teenage son is the sole beneficiary of the trust.

After initial legal advice and media reports, Ms Rayner sought expert counsel who advised her that more tax was due.

She admitted that initial advice was "wrong".

Ms Rayner said that the matters were confidential but applied to a court on Tuesday "so that I could give people the information".

While admitting that the accusations that she didn't pay stamp duty were "accurate", Ms Rayner said they were "in a different sense".

"I think the accusations were that I set up a trust and I flipped it to try and avoid paying it," she said.

"But actually the complex area of the trust which the advice that I relied upon didn't pick that up.

"The leading tax counsel who has subsequently looked at it has gone into that and said that actually, because of that, it did remain my sole property and the trust wasn't set up as accusations have been made for me to try and flip (it)."

When asked whether she was trying to dodge tax, the Deputy Prime Minister rejected the question.

"No, the trust was set up by a court to provide for my son after an injury," she said.

Ms Rayner was further asked whether she thought about quitting rather than disclosing the details about her son, saying "I spoke to my family about it".

"I spoke to my ex-husband, who has been an incredibly supportive person because he knows that all I've done is try and support my family and help them," she said.

Ms Rayner said in her statement that she "deeply regrets" her error.

She added that she was "committed to resolving this matter fully and providing the transparency that public service demands".

However, Sir Keir Starmer vowed to stand by Ms Rayner during a fiery exchange at Prime Minister's Questions.

Sir Keir said: “In relation to the Deputy Prime Minister she has explained her personal circumstances in detail, she’s gone over and above in setting out the details including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son.

“I know from speaking at length to the Deputy Prime Minister just how difficult that decision was for her and her family. But she did it to ensure that all information is in the public domain, she has now referred herself to the independent adviser, that is the right thing to do.

“But I can be clear I am very proud to sit alongside a Deputy Prime Minister, who is building 1.5 million homes, who has brought in the biggest upgrade to workers’ rights in a generation and who’s come from a working-class background to be Deputy Prime Minister of this country.”