Questions had been raised about whether she owed tax on a former council house in Stockport she sold in 2015 before she became MP for Ashton and whether the property was her main home for electoral purposes.
The Labour deputy leader had always denied any wrongdoing and said she would stand down if she was found to have broken the law.
Yesterday, Greater Manchester Police said they had concluded she face would no further action from them. They issues regarding person and council tax fell outside their jurisdiction and that they would share the findings of their investigation with Stockport Council and His Majesty's Revenue and Customs (HMRC).
A spokesperson for Stockport council has also said no further action will be taken.
GMP originally said Ms Rayner would not face an investigation following a 'investigative review' as there 'wasn't a case to answer!
However, in light of correspondence from deputy Tory party deputy chairman and Bury North MP James Daly, the force announced last month they were to 'review the circumstances' that following a 'reassessment of the information provided... by Mr Daly' and that an investigation was under way.
But after the police revealed there would be no action taken, Ms Rayner said: "I welcome the conclusion of the police investigation, and confirmation that no further action will be taken.
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