UK Deputy Prime Minister Resigns Over Underpaid Property Tax! Rents Soar to Record Highs! Fast-Fashion Giant Shein Caught in Tax Controversy!
- TBA
- Sep 8
- 5 min read
UK Deputy Prime Minister Admits to Underpaying Property Tax and Resigns
Recently, UK Deputy Prime Minister and Housing Secretary Angela Rayner admitted that she underpaid property tax when purchasing a flat in Hove, a seaside resort town in southern England. Whether this constitutes deliberate tax evasion remains under discussion.
In an interview with Sky News, Angela Rayner said she had proactively contacted tax authorities to declare the additional property tax owed and would pay it as soon as possible. “I was very shocked, because I thought I had never done anything wrong. It now appears that I made a ‘mistake’ based on the advice I received at the time.”
Her admission has embarrassed her own Labour Party, which is currently in government. A year ago, Prime Minister Keir Starmer won one of the largest election victories in modern British history, but recent polls show Labour trailing behind Nigel Farage’s populist Reform UK party.
At last week’s Prime Minister’s Questions, Conservative leader Kemi Badenoch argued that Starmer should sack Rayner. She accused Rayner of deliberately avoiding the higher tax rate on a second home and of giving up her share in a property in her northern England constituency when purchasing a new flat.
On the evening of September 5, Rayner resigned as Deputy Prime Minister after becoming subject to a tax investigation. Starmer subsequently appointed David Lammy as Deputy Prime Minister and Justice Secretary, using the moment to carry out a major cabinet reshuffle.
Home Secretary Yvette Cooper was moved to Foreign Secretary, while Justice Secretary Shabana Mahmood took over her role. Meanwhile, Starmer dismissed Commons Leader Lucy Powell and Scottish Secretary Ian Murray.
Since the general election, Rayner had been known for her outspoken and passionate style. Her extroverted personality was seen as one of Labour’s strongest electoral assets, helping her quickly connect with ordinary voters—perfectly complementing Starmer’s cautious and formal demeanor.
UK Rent Hits Record High, Cheapest Region Revealed
According to leading property website Rightmove, the average monthly rent across the UK reached a record £1,577 in August, up 3% compared with the same month last year. Data shows that London remains the most expensive rental market, while the North East is the cheapest.
The site added that although the number of homes available to rent nationwide was up 8% compared with August last year, it was still 27% lower than in August 2019. Tight housing supply is therefore one of the main drivers of rising rents.
Rightmove listed the average monthly rents and annual increases in August:
East Midlands: £1,134, ↑2.3%
East of England: £1,599, ↑2.5%
London: £2,699, ↑2.0%
North East: £918, ↑2.9%
North West: £1,278, ↑9.7%
Scotland: £1,141, ↑2.4%
South East: £1,828, ↑2.4%
South West: £1,461, ↑2.1%
Wales: £1,107, ↑2.6%
West Midlands: £1,196, ↑2.5%
Yorkshire & the Humber: £1,051, ↑2.5%
The North West saw the fastest rental growth, with average rents rising nearly 10% year-on-year, while London recorded the slowest growth at 2%.
Rightmove property expert Colleen Babcock said: “Both tenants and landlords are facing challenges.” On one hand, tenants may find limited options as rents reach record highs; on the other, landlords are grappling with increased tax burdens from stamp duty changes, which affect buy-to-let investments.
“It’s vital to keep the market attractive and viable for landlords, so tenants have more choice of comfortable homes. If rising taxes force more landlords out of the sector, it’s ultimately tenants who will suffer in the long run,” she added.
Shein Caught in UK Tax Controversy: Billions in Revenue “Flowing” to Singapore?
Fast fashion giant Shein has once again found itself in the spotlight. The UK-based Fair Tax Foundation has accused Shein of shifting the “vast majority” of its UK revenue to its Singapore parent company, thereby significantly reducing the amount of corporate tax payable in Britain.
According to filings at Companies House, Shein UK generated £2 billion in sales last year, but paid just £9.6 million in corporate tax.
Let’s break down the numbers: Shein UK reported profits of £38.2 million. Under the 25% corporation tax rate, around 84% of its sales revenue—some £1.72 billion—was booked as “procurement costs” and transferred to its Singapore-based parent, Roadget Business Pte Ltd. As a result, the taxable profit left in the UK was minimal.
Paul Monaghan, CEO of the Fair Tax Foundation, commented: “This practice is reminiscent of the tax avoidance controversies involving Amazon, Apple, and Microsoft more than a decade ago. It looks like the fast fashion industry is now replicating the ‘low-tax haven’ model.”
Singapore’s corporate tax rate is just 17%, and with special incentives, the effective rate can drop as low as 5%. Data shows that between 2021 and 2023, Shein’s Singapore business had an average effective tax rate of only 9.4%. Furthermore, Shein’s ultimate holding company is incorporated in the Cayman Islands, another jurisdiction widely seen as a tax haven.
Beyond corporate tax, Shein has also been criticized in the UK for exploiting the “low-value consignment relief” rule. Under current UK regulations, overseas retailers can ship goods worth £135 or less directly to consumers without paying customs duties.
In 2024 alone, parcels from China to the UK were worth as much as £3 billion, accounting for 51% of all small parcels. Estimates suggest that without this exemption, Shein would have had to pay up to an additional £200 million in customs duties.
It is worth noting that the US scrapped its “low-value exemption” for Chinese goods in May this year and will end it for all countries later this month. The EU has also announced plans to phase out similar exemptions. UK Chancellor Rachel Reeves has launched a review, which could pave the way for changes in Britain.
In response to the allegations, a Shein spokesperson strongly denied any wrongdoing, saying that all transactions comply with international practices and the “arm’s length principle.” The fast fashion sector, the spokesperson added, inherently operates on a “low-margin, high-volume” model, and Shein pays all taxes legally due in the UK. As for its Cayman Islands registration, the company said this was a “common corporate structure across industries.”
Why TB Accountants?
Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards.
Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones.
Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more.
Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax support.
For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information.
Get in touch with us at info@tbagroup.uk or for a free one-to-one consultation.
