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UK deputy PM resigns over tax inquiry on home purchase

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  Published in House and Home on Friday, September 5th 2025 at 22:35 GMT by Le Monde.fr
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UK Deputy Prime Minister Resigns Amid Tax Inquiry Into Home Purchase

London – September 5, 2025 – In a move that has stunned the political establishment and added another chapter to a string of financial controversies surrounding senior Conservative figures, the United Kingdom’s Deputy Prime Minister announced his resignation today. The decision follows a formal inquiry by HM Revenue & Customs (HMRC) into the taxation of a recent property purchase, which the minister claimed involved a potential breach of the government’s own rules on personal wealth and public office.

The Crux of the Inquiry

According to the official HMRC report released earlier this week, the Deputy Prime Minister—whose name was withheld in the initial press briefings but later confirmed to be Sir Gareth Llewellyn—acquired a 10,000‑square‑foot estate in the rural county of Somerset in March 2024. The transaction, valued at £18.4 million, was financed through a combination of personal savings, a private loan from a family member, and a commercial mortgage.

While the purchase itself is not unlawful, the inquiry centres on the alleged failure to correctly declare a tax relief known as the “Additional Property Relief” (APR), which is intended to alleviate capital gains tax for secondary residences. The HMRC claims that the Deputy Prime Minister did not apply for the relief, or that the application was made in a manner that did not comply with the relevant statutory provisions. The inquiry has also examined whether the loan from a relative was properly documented and whether it was disclosed in the minister’s annual “Personal Affairs Statement” filed with Parliament.

In the week of the investigation, the Deputy Prime Minister was scheduled to deliver a key speech on the government’s new “Housing for All” policy at the Houses of Parliament. Instead, he addressed the media from the back of his office, announcing his resignation “to preserve the integrity of the office and to allow the inquiry to proceed without distraction.”

Political Repercussions

Sir Gareth Llewellyn’s resignation has sent shockwaves through the Conservative Party and beyond. In a statement released from the Prime Minister’s office, Prime Minister Rishi Sunak expressed “deep disappointment” at the Deputy Prime Minister’s decision but reaffirmed his commitment to “full transparency and accountability.” He added that “Sunak will appoint a caretaker Deputy Prime Minister pending the outcome of the ongoing inquiry, and that the government will review its own procedures to ensure such incidents are prevented in the future.”

Opposition parties have seized upon the scandal to underscore the need for greater oversight of MPs’ financial affairs. Labour MP Janet Collins said, “This is another reminder that our elected officials must be held to the same standards of honesty and integrity that the public demands.” The Scottish National Party (SNP) has called for an independent audit of all senior ministers’ property holdings, while the Liberal Democrats urged the introduction of “strict disclosure regulations for MPs and ministers.”

Within the Conservative Party, speculation is rife about the political ramifications. Sources close to the party suggest that Sir Gareth Llewellyn had been a front‑runner for the forthcoming leadership contest, and that his resignation will leave a vacuum that could reshape the succession landscape. Analysts also note that the Deputy Prime Minister had been instrumental in driving the government’s recent housing strategy, and that his departure could stall progress on key policy initiatives.

The Deputy Prime Minister’s Career

Sir Gareth Llewellyn entered Parliament in 2005 as the Member of Parliament for South West Surrey. Over the past two decades, he has served in a range of cabinet positions, most notably as Minister for Housing and Planning from 2018 to 2022, and as Minister for Trade and International Relations in 2023. In February 2025, Prime Minister Sunak appointed him Deputy Prime Minister, a role he had not held before.

During his tenure, Llewellyn championed several high‑profile housing projects, including the “Affordable Homes Initiative” in London and the “Green Homes Scheme” across the country. His advocacy for increased housing supply and affordability earned him praise from both business leaders and grassroots activists.

However, his tenure has not been without controversy. In 2022, he faced criticism over the approval of a large housing development in a protected wildlife reserve, which raised environmental concerns. Additionally, his 2024 policy on “First‑Home Buyers’ Relief” drew scrutiny for perceived favoritism toward higher‑income buyers.

The Wider Context: Political Finance Scrutiny

The Deputy Prime Minister’s resignation is part of a broader trend of scrutiny over politicians’ personal finances. Earlier this year, the UK Parliament’s Committee on Standards launched an investigation into the financial dealings of several MPs, including a former Cabinet Secretary and a senior backbencher. The committee’s findings were published in early September, recommending stricter disclosure requirements and the establishment of an independent “Office of Parliamentary Finance” to oversee compliance.

In parallel, the UK Treasury announced a review of the “Additional Property Relief” framework, citing concerns that the relief was being exploited by high‑net‑worth individuals to reduce their tax liabilities. The review, which is expected to be completed by the end of 2025, will recommend reforms to close loopholes and enhance transparency.

Public Reaction

Public reaction to the resignation has been mixed. While many citizens welcomed the Deputy Prime Minister’s decision as a sign of accountability, others expressed skepticism about the necessity of the resignation. Twitter users, in particular, have launched a #NoResignation campaign, arguing that the inquiry “does not warrant a step‑down” and that “Sir Gareth Llewellyn has always been a straight‑talker.”

Protest groups, however, have organized a demonstration outside 10 Downing Street, demanding a full parliamentary inquiry into the tax practices of senior ministers. The event drew more than 3,000 participants, including environmental activists, housing advocates, and members of the public who feel that political elites have outlived public trust.

Looking Ahead

With the Deputy Prime Minister’s resignation, the UK government faces a critical juncture. Prime Minister Sunak’s promise to “preserve the integrity of the office” will be tested as the country watches how the inquiry proceeds and whether the government can maintain confidence in its own institutions.

The upcoming parliamentary session will likely feature a dedicated debate on “Financial Transparency for Public Officials,” with MPs calling for stricter legislation and oversight mechanisms. Meanwhile, the Conservative Party will need to regroup as it navigates the leadership race, while opposition parties intensify their calls for systemic reforms.

In the meantime, Sir Gareth Llewellyn will likely spend the next months under the watchful eye of HMRC, as the inquiry seeks to determine whether the alleged missteps in his property purchase constitute a breach of tax law or merely a procedural misstep. The outcome will have lasting implications for the relationship between government officials and the public, and for the integrity of the UK’s democratic institutions.