She will also resign as Secretary of State for Housing, Communities and Local Government and deputy leader of the Labour Party.
In a letter to Prime Minister Keir Starmer, Rayner said she “deeply regretted” the decision not to get specialist tax advice on her housing arrangements but said she takes “full responsibility for this error”.
She continued on to say that it was “never her intention to do anything other than pay the right amount” of stamp duty.
Rayner said the media fallout had taken a “significant toll” on her family and her “priority has, and always will be, protecting my children and the strain I am putting them under through staying in post is unbearable”.
The resignation comes as Rayner confirmed that she had underpaid stamp duty on an £80,000 Hove flat she bought earlier this year.
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Reports suggested earlier this week that while she paid the standard rate of stamp duty, she should have paid the higher rate for a second home, with the difference being up to £40,000.
The complexity lies in her home in Ashton-under-Lyne, which is where her children live, and was placed in a trust with her children as the main beneficiaries and her name was removed from the deed of the house, which she said led to a misunderstanding over which level of stamp duty to pay.
Mortgage Solutions has contacted the Ministry for Housing, Communities and Local Government about who will take over Rayner’s role but has not had a response as of yet.
