Deputy Labour leader Angela Rayner will face no further action following a police investigation into her living arrangements.
She had faced allegations she may have broken electoral law following a complaint from Tory deputy chairman James Daly.
A Greater Manchester Police spokesman 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.”
Questions about Ms Rayner’s living arrangements surfaced following suggestions in a book by former Tory deputy chairman Lord Ashcroft that she failed to properly declare her main home.
The unauthorised biography alleges that the MP for Ashton-under-Lyne bought her former council house, in Vicarage Road in Stockport, Greater Manchester in 2007 under the right-to-buy scheme.
Her then husband was listed at another address in Lowndes Lane, about a mile away, which had also been bought under the right-to-buy scheme.
In the same year as her wedding, Ms Rayner is said to have re-registered the births of her two youngest children, giving her address as where her husband resided.
Ms Rayner has insisted that Vicarage Road was her “principal property” despite her husband living elsewhere at the time.
She has faced questions about whether she should have paid capital gains tax when her home was sold and if she paid the correct amount of council tax.
Mr Daly had alleged she may have made a false declaration about where she was living on the electoral register.
While the police are taking no further action on that claim, they said matters involving tax did not fall within their jurisdiction.
“GMP has liaised with Stockport Council and information about our investigation has been shared with them,” the police spokesman said.
“Details of our investigation have also been shared with His Majesty’s Revenue and Customs (HMRC).”
It is understood HMRC looked into the matter at Ms Rayner’s request and concluded there was no capital gains tax liability.
A Labour 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 cooperated 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.”
Related: Angela Rayner faces no further police action following ‘thorough’ investigation