The tax authority ruled that the Labour deputy leader's house in Stockport was her principal home for the whole time she owned it, meaning no tax would be due.
Angela Rayner has been cleared by HM Revenue and Customs after it was concluded that she owes no capital gains tax for the sale of her former council house.
The tax authority ruled that the Labour deputy leader's house in Stockport was her principal home for the whole time she owned it,meaning no tax would be due,The Guardian reports.
The Ashton-under-Lyne MP had faced claims she may have broken electoral law and dodged capital gains tax and council tax when she sold her Right-to-Buy home in 2015 and made a £48,500 profit.
She has always insisted the property on Vicarage Road was her 'principal property' - despite her then husband living on nearby Lowndes Lane at the time.
HMRC's decision comes after Greater Manchester Police and Stockport Council both also said they would take no further action on Tuesday.
Pictures revealed that Ms Rayner's garden looked rather less impressive with an overgrown lawn,weeds sprouting on the paving slab patio and unstable looking fences
The mother-of-two,who gave evidence to the police investigation,said: 'It's bloody ridiculous.
Angela Rayner 'faces no further action' from police after probe into arrangements over her two homes - but force has shared details of probe with HMRC
'I know the truth and so does my son. She was definitely living next door to me and she knows she was.'
Chris Hinett,64,who lives a few doors down from the house where Ms Rayner claimed she lived in Vicarage Road,Stockport,also reacted with anger.
He said Ms Rayner described herself as 'the landlord' at the house as he intervened in a row over a broken window before she sold it.
The car salesman said of her being cleared: 'It's disgusting. I co-operated with the police but when they knock on my door next time,I won't bother.
'It's the police's job to investigate election law. She is potentially going to be the next deputy prime minister – it's not right.'
Questions about Ms Rayner's living arrangements surfaced following suggestions in a book by former Tory deputy chairman Lord Ashcroft that she failed to properly declare her main home.
The unauthorised biography alleges that the MP bought her former council house,in Vicarage Road in Stockport,Greater Manchester in 2007 under the right-to-buy scheme.
Her then husband was listed at another address in Lowndes Lane,about a mile away,which had also been bought under the right-to-buy scheme.
In the same year as her wedding,Ms Rayner is said to have re-registered the births of her two youngest children,giving her address as where her husband resided.
Ms Rayner has insisted that Vicarage Road was her 'principal property' despite her husband living elsewhere at the time.
In 2015,Ms Rayner sold the property,making a £48,500 profit.
Couples can normally only count one property as their main home for capital gains tax purposes,prompting questions over whether she should have paid it.
Mr Daly had alleged she may have made a false declaration about where she was living on the electoral register.
Following the police announcement,Rayner said: 'We have seen the Conservative party use this playbook before – reporting political opponents to the police during election campaigns to distract from their dire record. I am grateful to all those who have stood by and supported me and my family.'
Labour leader Keir Starmer said he was 'obviously pleased',adding: 'I never doubted that Angela hadn't done anything wrong.'
A Labour spokesman said on Tuesday: 'The police have now completed their investigation into claims made by the Conservative Party deputy chairman and have concluded that no further action will be taken.
'Angela cooperated fully with the police investigation throughout.
'Angela has always been clear that she was not liable for capital gains tax on the sale of the home she owned before she was an MP,that she was properly registered to vote,and paid the appropriate council tax. She took expert tax and legal advice which confirms this.
'This draws a line under the matter.'
This is a breaking news story. More to follow.
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