Deputy Prime Minister and Housing Secretary Angela Rayner has resigned from the government after an investigation into her tax affairs concluded she breached the ministerial code.

Poppy Gustafsson, the investment minister, is also set to leave the government today according to media reports, prompting rumours of another parliamentary reshuffle.

Independent standards adviser Sir Laurie Magnus said Ms Rayner underpaid stamp duty on an £800,000 flat she bought in Hove earlier this year.

Ms Rayner paid £40,000 less stamp duty on the property than she should have, as she claimed it was her main home rather than a second home. She had bought the Hove property after selling her stake in another home to her son’s trust.

Ian Dyall, head of estate planning at wealth management firm Evelyn Partners, said: “If you transfer your property into a trust, you are effectively giving away ownership of that property.

“The tax treatment will depend on whether that is done during life or on death, whether you continue to be able to benefit from the use of that property or any income it generates, who can potentially benefit from the trust and how they are able to benefit.”

Ms Rayner said she had believed, on legal advice, that she was liable for the standard rate of stamp duty, but was later advised that, although she did not own any other property at the time of the purchase, complex provisions relating to the trust “gives rise to additional stamp duty liabilities.”

In her resignation letter she wrote: “I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error. I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount."

Sir Laurie said: “The responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves.”

Poppy Gustafsson, former boss of British cyber security company Darktrace, headed the Office for Investment, which promised a ‘concierge’ service to those looking to invest in Britain.

She will leave her role after less than a year as part of a ministerial reshuffle, according to reports.