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Blears expenses come under renewed scrutiny
04.06.09
Hazel Blears made at least £80,000 on the sale of two taxpayer-subsidised properties without paying capital gains tax, it was reported today.
Claims about her profits emerged alongside fresh details about her second home allowance claims after she announced her resignation as Communities Secretary.
Last month the Salford MP apologised to voters for not paying the duty and voluntarily handed over a cheque to HM Revenue and Customs for more than £13,000.
But it has now become clear that the sum covered profits from the sale of two properties, rather than just her flat in Kennington, south London, as previously thought.
The other flat is at Shad Thames, near Tower Bridge.
Ms Blears claimed costs towards both, at different times, on her taxpayer-funded expenses before selling them for a combined profit of more than £80,000, according to the Daily Telegraph.
A Cabinet Office compliance unit reportedly found evidence of the second case when it was trawling through ministers' files.
In both instances, Ms Blears apparently declared the properties as second homes to claim Commons allowances, before designating them as main homes for tax purposes in order to avoid tax.
A spokesman for Ms Blears said: "The information about Hazel's flats and CGT has been on her public website since May 15.
"She made it clear both on the website and to HM Revenue and Customs that she was talking about two flats, and the amount of money she paid was calculated on the basis of both flats. This is not new information."
The spokesman insisted the allegations had "nothing to do with her decision to resign".
A friend of Ms Blears questioned why the details emerged today, saying it appeared to be "a classic smear operation".
Reader views (32)
I wonder if only the poor pay capital gains Tax? after hearing that EX-Ministers and MP'S don't pay it.
- Stan White, leeds
i trust h.m customs and revenue will launch a full and detailed investigation of all m/s blears financial affairs
as they would for the common man, or women and apply the full weight of legislation to any irregularities discovered.if she is economical with fiscal matters, what of her decisions and machinations while in power?
perhaps an official investigation might be in order.
- M.O'Brien, london.uk
The standards of our key personnel in politics have dived to new and darker depths. To observe the strut of some of the resigning ministers and MP's, their statements in print or on television or radio is akin to observing self serving, thick skinned and shameless bullies who have contributed nothing of substance in a public office, that the electorate entrusted them with so much belief, confidence and expectation. The electorate may have been naiive in their voting or expectations but but the performances of some of our politicians also prove that politics is not an honorable profession anymore. Quite appalling behaviour really and a very sad plight of what is a very selfless pursuit and way of life
- Rahnuma, weybridge, surrey
Will it never stop, this lot would be unemployable in private life, SACK THE SODS,!!!!!!!!!!!!!!!!!
- Richard Edmunds, Rayleigh Essex
I sincerely wish that Martin Bell will stand against her as he promised on "Question Time" - I would like to see her face than?!! When will our media start calling these politicians "SHAMELESS & CORRUPT"? She should payback all the profits and the IR should look into her affairs...
- Samraj, London
Surely if we (the tax payer) have paid the interest we are entitled to the profits. I certainly agree that she should get back her initial capital investment and any capital paid off from the proceeds of the sale, but doesn't the £80,000 profit belong to the tax payer? No wonder she is so keen to write a cheque for £13,000 if she gets to keep the rest.
- Steve, London
Hear, hear Roz in France. I agree with every word you say. When is the law gong to get involved?
- Graham, London
O what a suprise! More thieving Labour MP's ducking prosecution. They should all be rounding up and held responsible for their deceitful ways.
- Dirk Diggler, Soho, London
When is HMRC going to get involved and prosecute the MPs who didn't pay capital gains tax?
- Andy, london
The general attitude seems to be that it's only a crime if you get caught, and that if you pay back what you stole that makes it quits again. The average 4 year old has a greater sense of morality!
Hands up, fellow readers: if you had to write out a cheque for £13,000 tomorrow, how many of you have the cash in the bank to meet it? Who is bank-rolling all these pay-backs? If they have that much loose change to play with, surely they are over-paid: do they need expenses at all . . . ?
- Roz, France
Any chance of getting a Home Secretary who isn't bent, this time round? It would be a real novelty in this government to have someone who isn't screwing the country. You never know, it might even start a trend.
- .Lezl, London / ENGLAND
"and voluntarily handed over a cheque to HM Revenue and Customs for more than £13,00"
A quick back of an envelope calculation suggests that she has only paid the tax, but not the interest, penalties and 10% surcharge that ordinary people would have to pay for being 'forgetful'. In essence, she hasn't paid the full range of minimum penalties that WE have to pay.
This is just the problem with these arrogant people, they don't understand that HMRC would come down like a ton of bricks on an ordinary taxpayer even if we admit an error and don't try to hide it.
These people don't understand the complex tax system that WE have to cope with, yet which THEY devised.
- George, London
Depending on when she sold those properties, she could her liability on cpital gains tax could have been upt ot 40%. How did she arrive at the £13,000 figure? Has the Inland Revenue accepted her payment? or will they simply give her a credit, as she declared them to be her main homes (nothing to charge against!).
- Beatriz, London
Now that the Home Secretary has disappeared down her publicly owned drain hole, would she please return the plugs that she charged us for.
- .Lezl, London / ENGLAND
I wonder what her constituency voters will think of her? I certainly wouldn't vote her in again. I think it's time the police moved on these thieves.
- Norcot, Oakham Rutland
Reuben Camara, Morecambe, Lancaster they can use her own personal pair of handcuffs
- Ge, Kernow
Adam, you are a bit harsh on MPs with families from a constituency many hours' travel from Westminster. They do need homes in London, not just an overnight pad. Without a second home, they'd have to move permanently out of their constituency to London, meaning their constituents would be unable to easily meet with their MP. They'd also lose touch with local events and concerns in the constituency.
However, I completely agree that all capital gain on an MP's state-funded second home should belong 100% to the state. MPs should be prevented from making any profit at all on second homes. The simplest way would be if the state bought the MP's second house for him and allowed him to live there rent-free until he ceased to be an MP. If an MP preferred, he could buy a second home using his own money, pay his own mortgage interest, and keep any profit (after paying his capital gains tax, of course!)
- Nigel, London
Anything she is involved with, I WILL NOT VOTE FOR !!!
She is the kiss of death !
- A.Txpayer, london
WHERE ARE THE POLICE?
WHERE ARE THE HANDCUFFS?
ONE LAW FOR JOE PUBLIC AND A DIFFERENT LAW FOR MP's.
- Reuben Camara, Morecambe, Lancaster
"Blears made at least £80,000 on the sale of two taxpayer-subsidised properties without paying capital gains tax"
No wonder she is smiling.
"classic smear operation"?
No, try own goal.
- Frank, Home Counties, England.
She is reputed to be an excellent grass-roots Labour campaigner. How on earth can a person simultaneously be a sincere & committed public servant- and at the same time fleece that public as much as possible?
- Cynical, Colchester
The fact that Blears et al failed to pay CG tax on their second property is irrelevant. A second property, funded by the tax payer for use as a London home, should be taxed at 100% GT. In other words, the MPs should not be able to make any profit on their second homes and all fixtures, fittings etc claimed from the fees office must be sold when the property is sold or the MP loses his/her seat.
Ideally there should be no second homes. MPs who need a London base should be housed in a commutable ex-council tower block.
- Adam, Harrow, UK
Time for "Plod" and the Inland Revenue to take a deep interest in this motormouth MP.
- Alan, Essex
Sounds like suspiciously like tax evasion and fraud to me - which I'm pretty sure are criminal offences.
Anyone want to bet some money on her going to prison? No, me neither.
- John T, London
She is more of a publicity junkie than a serious 19 Big Brother semifinalist hoping to be a model or TV presenter!
Go away you shrill little woman.
- Undercover Elephant, Dole Farm, Crays Hill, Essex
Her Weasel (Mustela nivalis) like manner will not be missed, lock her up and throw away the key and do us all a favour
- Ge, Kernow
Should Blears, like others in Parliament who have done the same, be charged with a criminal offence ?
I am sure that if I did the same and didn't disclose, HM Revenue and Custom would have me in court charged with tax evasion ?
- John Bloomfield, Twickenham
Surely the Inland Revenue investigate and prosecute if necessary anyone who incorrectly designates a second home as a first home to avoid Capital Gains Tax, M.P. or not ?
- Gourmet, Hove England
Good to see that when the going gets tough the women run for the hills. This parasite has put womens progress back 100 years with her dodgy dealing.
- Steve, London
Well what do you know, the duracell rat faced bunny is still HOGGING the headlines.
- Thetruthman, United Kingdom
She reminds me of the wicked witch of the west. I hope she enjoys her time at her majesties pleasure. Paying back money does not clear you of a crime simply makes the prosecution job easier. I have no doubt after her antics yesterday here is one person who is going to feel the full weight of the law
- Gary, Brentwood 1
80.0000 No wonder she is running for the hills, I hope the duracell bunnies battery last while she is running. She made enough to buy a few batteries, on the back of the tax payer.
- Thetruthman, United Kingdom
