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Minister quits over her expenses Minister quits over her expenses
(30 minutes later)
Treasury minister Kitty Ussher has quit the government after further questions were raised about her expenses.Treasury minister Kitty Ussher has quit the government after further questions were raised about her expenses.
Ms Ussher took the step amid reports she "flipped" the designation of her second home shortly before selling it in 2007, avoiding capital gains tax.Ms Ussher took the step amid reports she "flipped" the designation of her second home shortly before selling it in 2007, avoiding capital gains tax.
Ms Ussher denied she did anything wrong and said she was stepping aside to prevent the government embarrassment.Ms Ussher denied she did anything wrong and said she was stepping aside to prevent the government embarrassment.
The move comes on the eve of the publication of all MPs' expenses on the Parliament website.The move comes on the eve of the publication of all MPs' expenses on the Parliament website.
Rising starRising star
Ms Ussher, Exchequer Secretary and MP for Burnley, resigned after speaking to Chancellor Alistair Darling and Prime Minister Gordon Brown on Thursday.Ms Ussher, Exchequer Secretary and MP for Burnley, resigned after speaking to Chancellor Alistair Darling and Prime Minister Gordon Brown on Thursday.
She was immediately replaced at the Treasury by Communities Minister Sarah McCarthy-Fry.She was immediately replaced at the Treasury by Communities Minister Sarah McCarthy-Fry.
Ms Ussher, who has two young children, said she would also stand down from Parliament as the next election, citing family reasons.Ms Ussher, who has two young children, said she would also stand down from Parliament as the next election, citing family reasons.
I arrived at this decision because I do not want to cause you or the government any embarrassment Kitty Ussher
The BBC's Political Editor Nick Robinson said one of Labour's rising stars had become the latest victim of the expenses saga - demonstrating that the issue was still haunting Westminster.The BBC's Political Editor Nick Robinson said one of Labour's rising stars had become the latest victim of the expenses saga - demonstrating that the issue was still haunting Westminster.
Ms Ussher was one of the MPs whose expenses claims for her second home - a flat in London - were investigated by the Daily Telegraph.Ms Ussher was one of the MPs whose expenses claims for her second home - a flat in London - were investigated by the Daily Telegraph.
However, it is understood that her resignation relates to separate allegations about the sale of a property in 2007 on which she did not pay capital gains tax.However, it is understood that her resignation relates to separate allegations about the sale of a property in 2007 on which she did not pay capital gains tax.
People with more than one property are liable for capital gains tax on the sale of their second home, but must inform Revenue and Customs of their status. People with more than one property are liable for capital gains tax on the sale of their second home, but must inform Revenue and Customs which property this is.
It is understood Ms Ussher switched the designation of properties, for tax purposes, a month before selling the property in question and did not pay tax. It is understood Ms Ussher switched the designation of her properties, for tax purposes, a month before selling her constituency home and thus did not pay tax.
Ms Ussher said she had done nothing wrong and her actions were in line with guidance from Revenue and Customs and the Commons authorities. Our correspondent said the move would have been highly controversial at any time but amid the public anger over recent MPs expenses, was especially damaging.
Our correspondent said the move would have been highly controversial at any time, but amid the public anger over recent MPs expenses, is especially damaging. Several Labour MPs, including former Cabinet ministers Hazel Blears, Geoff Hoon and James Purnell, have faced questions over non-payment on tax on home sales.
All insisted they acted within the rules which allow MPs to nominate the same property as their principal residence for tax purposes as well as their second home for expenses.
Despite repaying more than £13,000 to the tax authorities, Hazel Blears' behaviour was condemned as "totally unacceptable" by Gordon Brown.
'Great regret'
In her resignation letter, Ms Ussher said her actions were in line with guidance from Revenue and Customs, the Commons authorities and a firm of accountants which she had consulted.
"It is with the greatest regret I have decided to resign from the government," she said.
"After careful consideration I arrived at this decision because I do not want to cause you or the government any embarrassment."
She added: "I did not do anything wrong....Neither have I abused the allowance system of the House of Commons in any way."
Ms Ussher added that she had decided some time ago to leave Parliament at the next election since being an MP was not congenial to raising a family.
"There is no other reason for the decision," she added.
Ms Ussher was only elected to Parliament in 2005 but rose quickly through the ranks, serving as City Minister and in the Work and Pensions Department before getting her most recent role in the reshuffle earlier this month.