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| Version 1 | Version 2 |
|---|---|
| Brown defends ministers over tax | Brown defends ministers over tax |
| (20 minutes later) | |
| Gordon Brown has defended two cabinet ministers who did not pay capital gains tax on home sales - a day after calling Hazel Blears' behaviour "unacceptable". | Gordon Brown has defended two cabinet ministers who did not pay capital gains tax on home sales - a day after calling Hazel Blears' behaviour "unacceptable". |
| The PM's spokesman said James Purnell and Geoff Hoon had acted within the letter and spirit of the law. | The PM's spokesman said James Purnell and Geoff Hoon had acted within the letter and spirit of the law. |
| He had criticised Ms Blears who chose to repay the money despite also not apparently breaking any rules. | He had criticised Ms Blears who chose to repay the money despite also not apparently breaking any rules. |
| But the PM says he has "full confidence" in Ms Blears and she says she is "getting on with the job". | But the PM says he has "full confidence" in Ms Blears and she says she is "getting on with the job". |
| As the furore over MPs expenses continues, Ben Chapman became the first Labour MP to say he would stand down at the next election amid claims he was reimbursed for a loan that had been paid off. Mr Chapman insists he has done nothing wrong. | As the furore over MPs expenses continues, Ben Chapman became the first Labour MP to say he would stand down at the next election amid claims he was reimbursed for a loan that had been paid off. Mr Chapman insists he has done nothing wrong. |
| Three Conservatives, Anthony Steen, Douglas Hogg and Sir Peter Viggers, have also announced their intention to step down after they were criticised for their expenses claims. | Three Conservatives, Anthony Steen, Douglas Hogg and Sir Peter Viggers, have also announced their intention to step down after they were criticised for their expenses claims. |
| In its 14th day of revelations about MPs' expenses, the Daily Telegraph it targeted Work and Pensions Secretary Mr Purnell and Transport Secretary Geoff Hoon. | In its 14th day of revelations about MPs' expenses, the Daily Telegraph it targeted Work and Pensions Secretary Mr Purnell and Transport Secretary Geoff Hoon. |
| Money repaid | Money repaid |
| It reported that Mr Purnell had not paid capital gains tax (CGT) on his designated "second home" - and had claimed expenses for "tax advice" on the sale. | It reported that Mr Purnell had not paid capital gains tax (CGT) on his designated "second home" - and had claimed expenses for "tax advice" on the sale. |
| Mr Hoon sold a property on which he did not claim expenses. But the Telegraph said he had claimed it was his main home for CGT purposes, when he had been living in a "grace and favour" flat and renting it out. | Mr Hoon sold a property on which he did not claim expenses. But the Telegraph said he had claimed it was his main home for CGT purposes, when he had been living in a "grace and favour" flat and renting it out. |
| Both said they were not liable for CGT and had had their claims checked over by accountants and Revenue and Customs. | Both said they were not liable for CGT and had had their claims checked over by accountants and Revenue and Customs. |
| As far as I know there is no problem that needs to be dealt with Gordon Brown Labour MP to stand down 'Duck island' claim MP to retire Tory MP attacks expenses listing Time for a Westminster revolution? | As far as I know there is no problem that needs to be dealt with Gordon Brown Labour MP to stand down 'Duck island' claim MP to retire Tory MP attacks expenses listing Time for a Westminster revolution? |
| Mr Brown, who has said Hazel Blears' failure to pay CGT on her second home was "totally unacceptable", said he did not believe Mr Purnell or Mr Hoon should repay any money. | Mr Brown, who has said Hazel Blears' failure to pay CGT on her second home was "totally unacceptable", said he did not believe Mr Purnell or Mr Hoon should repay any money. |
| ''I think it's important that they have made statements, they have said... what they have done," Mr Brown said. | ''I think it's important that they have made statements, they have said... what they have done," Mr Brown said. |
| "There is an inquiry going on in Parliament. People will look back on the expenses of the last four years. They will make a judgement, but as far as I know there is no problem that needs to be dealt with.'' | "There is an inquiry going on in Parliament. People will look back on the expenses of the last four years. They will make a judgement, but as far as I know there is no problem that needs to be dealt with.'' |
| Ms Blears repaid £13,332 in respect of capital gains tax on the sale of a flat she had designated her "second home" for expenses purposes. | Ms Blears repaid £13,332 in respect of capital gains tax on the sale of a flat she had designated her "second home" for expenses purposes. |
| Rebuild trust | Rebuild trust |
| She also said she had never broken any rules - guidance to MPs states that their "second home" can still be designated as their "principal residence" to HM Revenue and Customs for capital gains tax. | She also said she had never broken any rules - guidance to MPs states that their "second home" can still be designated as their "principal residence" to HM Revenue and Customs for capital gains tax. |
| But she said she had been hurt by reaction to the story in her Salford constituency and said she wanted to try to rebuild trust. | But she said she had been hurt by reaction to the story in her Salford constituency and said she wanted to try to rebuild trust. |
| Mr Brown said her behaviour had been "unacceptable" but she had repaid the money and retained his full confidence as communities secretary. | Mr Brown said her behaviour had been "unacceptable" but she had repaid the money and retained his full confidence as communities secretary. |
| I did acknowledge that people were very angry - which is why I sent my cheque off to the taxman Hazel Blears | I did acknowledge that people were very angry - which is why I sent my cheque off to the taxman Hazel Blears |
| Asked if she felt she had been treated differently, Ms Blears told reporters: "I'm not going to get into a debate with you, in the media, about any colleague of mine, or about the prime minister." | Asked if she felt she had been treated differently, Ms Blears told reporters: "I'm not going to get into a debate with you, in the media, about any colleague of mine, or about the prime minister." |
| She added: "I have abided by the tax rules, I have abided by the rules of the House of Commons but I did acknowledge that people were very angry - which is why I sent my cheque off to the taxman." | She added: "I have abided by the tax rules, I have abided by the rules of the House of Commons but I did acknowledge that people were very angry - which is why I sent my cheque off to the taxman." |
| Under tax rules, sellers can claim a property is a main residence for CGT purposes, as long as they lived there less than three years before the sale. | Under tax rules, sellers can claim a property is a main residence for CGT purposes, as long as they lived there less than three years before the sale. |
| Mr Purnell's spokesman said the allegations were "completely untrue" as he had bought his constituency home at a time he was trying to sell his London flat. | Mr Purnell's spokesman said the allegations were "completely untrue" as he had bought his constituency home at a time he was trying to sell his London flat. |
| "The sale of his London flat fell through, but it was sold within the period that HM Revenue and Customs continue to treat it as not being liable for CGT," he said. | "The sale of his London flat fell through, but it was sold within the period that HM Revenue and Customs continue to treat it as not being liable for CGT," he said. |
| He said he now rents his "second home" so would not make any capital gains on it and had double checked with HMRC, which had confirmed he was not liable. | He said he now rents his "second home" so would not make any capital gains on it and had double checked with HMRC, which had confirmed he was not liable. |
| "No one pays CGT when they sell the only house they own and James was not liable for capital gains tax on his London flat." | "No one pays CGT when they sell the only house they own and James was not liable for capital gains tax on his London flat." |
| 'Consistent' | 'Consistent' |
| Mr Hoon said he had moved into the grace and favour flat for security reasons - which was cheaper for the taxpayer than staying where he was and paying for extra security - and had fully declared that the property had been rented out to the Inland Revenue. There had been no liability for CGT, he said. | Mr Hoon said he had moved into the grace and favour flat for security reasons - which was cheaper for the taxpayer than staying where he was and paying for extra security - and had fully declared that the property had been rented out to the Inland Revenue. There had been no liability for CGT, he said. |
| Mr Hoon said: "I reject any suggestion of any wrongdoing in relation to my declarations to the House of Commons authorities and HMRC. | Mr Hoon said: "I reject any suggestion of any wrongdoing in relation to my declarations to the House of Commons authorities and HMRC. |
| "I have been consistent in my declarations to both parties and I have been assiduous in ensuring that I have met my reporting obligations and my tax liabilities." | "I have been consistent in my declarations to both parties and I have been assiduous in ensuring that I have met my reporting obligations and my tax liabilities." |
| Dr Ian Gibson, the Labour MP for Norwich North, has also faced allegations that while he was claiming for his second home in London, his partner and her daughter were living there rent-free - and he subsequently sold it to them for less than he bought it. | |
| He insisted he he acted in good faith and within the rules, and "made nothing on the house whatsoever". | |
| Meanwhile there have been some concerns that cabinet ministers are not being punished to the same extent as backbenchers. | Meanwhile there have been some concerns that cabinet ministers are not being punished to the same extent as backbenchers. |
| MPs Elliot Morley and David Chaytor have been suspended from the Parliamentary Labour Party after questions were raised about their claims. | MPs Elliot Morley and David Chaytor have been suspended from the Parliamentary Labour Party after questions were raised about their claims. |
| Peter Kenyon, a member of Labour's ruling national executive committee, told BBC Radio 4's The World at One he had received "numerous representations" on the issue. | |
| "The perception out there in the CLPs (constituency Labour parties) is that government members are being treated differently from backbenchers," he said. | "The perception out there in the CLPs (constituency Labour parties) is that government members are being treated differently from backbenchers," he said. |
| "That is going to have to be dealt with and dealt with quickly." | "That is going to have to be dealt with and dealt with quickly." |