ANGELA Rayner has been told by police they will take no further action against her.
The deputy Labour leader was investigated following a complaint over breaking electoral law.
But police have now decided to share details about their investigation with the tax man and her local council.
The complaint was made by Tory MP James Daly into her living arrangements almost a decade ago.
Greater Manchester Police said they were looking into claims Ms Rayner may have falsely registered her address on the electoral roll.
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But they stated that matters involving council tax and and personal tax don't fall under their jurisdiction.
Her living arrangements drew attention following suggestions in a book by ex-Tory deputy chairman Lord Ashcroft that she failed to properly declare her main residence.
The unauthorised biography made allegations that the party's deputy leader bought her former council house, in Vicarage Road in Stockport, Greater Manchester in 2007 under the right-to-buy scheme.
She had insisted that this was her "principal property" despite her husband living elsewhere.
Rayner also faced questions about whether she should have paid capital gains tax when the property was sold and then whether she paid the right amount to the tax man.
A statement by the force said: "Following allegations about Angela Rayner MP, Greater Manchester Police has completed a thorough, carefully considered and proportionate investigation.
"We have concluded that no further police action will be taken.
“The investigation originated from complaints made by Mr James Daly MP directly to GMP.
"Subsequent further contact with GMP by members of the public, and claims made by individuals featured in media reporting, indicated a strong public interest in the need for allegations to be investigated.
“Matters involving council tax and personal tax do not fall into the jurisdiction of policing.
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"GMP has liaised with Stockport Council and information about our investigation has been shared with them. Details of our investigation have also been shared with His Majesty’s Revenue and Customs (HMRC).”
The force had said they weren't probing the claims against but reversed their decision after the complaint by James Daly.
He had told the force that claims by her neighbours appeared to contradict her comments that she lived in her Vicarage Road main resideence - but her husband's home was a mile away.
GMP said they were reopening an investigation into claims Ms Rayner may have falsely registered her address on the electoral roll.
A Labour Party spokesman said: "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 co-operated 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."
