Angela Rayner will face “no further police action” over allegations about her living arrangements, Greater Manchester Police have said.
Labour’s deputy leader had been accused of breaking electoral law after providing the wrong information about where she lived before she was an MP.
Rayner had always denied any wrongdoing and said she would stand down from her job if found to have committed an offence.
But in a statement on Tuesday, Greater Manchester Police said after “a thorough, carefully considered and proportionate investigation” it was dropping the matter.
Rayner was accused of providing the wrong information about her living arrangements after she got married in 2010.
At the time, she lived in an ex-council house in Stockport that she had bought in 2007.
According to a biography of Rayner by former Tory chairman Lord Ashcroft, she was registered on the electoral roll as living at the same address until she sold the property in 2015.
However, she was accused of actually living at her husband’s house nearby, leading to claims that the profit she made on her property should have been subject to capital gains tax.
Keir Starmer accused the Conservatives of trying to “smear” his deputy with the allegations.