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Maria Miller home tax avoidance claim 'nonsense' | |
(35 minutes later) | |
Culture secretary Maria Miller has denied trying to avoid capital gains tax on the sale of her London home. | Culture secretary Maria Miller has denied trying to avoid capital gains tax on the sale of her London home. |
The Daily Telegraph suggested she had ceased to claim parliamentary allowances on the property to reduce her tax liability. | The Daily Telegraph suggested she had ceased to claim parliamentary allowances on the property to reduce her tax liability. |
But her spokeswoman dismissed the allegation as "nonsense". | But her spokeswoman dismissed the allegation as "nonsense". |
Mrs Miller, a Conservative MP, was cleared last week by the Commons Standards Committee of funding a home for her parents at taxpayers' expense. | Mrs Miller, a Conservative MP, was cleared last week by the Commons Standards Committee of funding a home for her parents at taxpayers' expense. |
Prime Minister David Cameron has repeatedly emphasised that he has confidence in the minister. | |
However, on Sunday former Conservative Party chairman Lord Tebbit accused Mrs Miller of "arrogance" in her response to the affair and urged her to resign. | |
Work and Pensions Secretary Iain Duncan Smith told the BBC that Mrs Miller was suffering a backlash for being the minister responsible for getting the bill which brought in same-sex marriage - deeply unpopular with many Tories - through Parliament. He warned of a "witch-hunt" and said she deserved support. | |
The Labour Party has accused Mr Cameron of letting Mrs Miller "off the hook" - but has not called for her resignation. | |
Labour MP John Mann has written to House of Commons Speaker John Bercow asking for an urgent question in Parliament of reforming the system for scrutinising expenses. | |
Advice | |
The Telegraph's latest report makes further allegations relating to Mrs Miller's home in Wimbledon, south-west London, which was sold this year for more than £1m above its 1995 purchase cost. | |
In 2009 she redesignated it as her main residence and stopped claiming second-home allowances on it. This, the Telegraph says, was in an effort to avoid capital gains tax, which is payable at a rate of 28% on profits made from the sale of second homes. | |
In 2009, in the wake of the parliamentary expenses scandal, MPs were advised to pay capital gains tax on the sale of any home for which they had claimed allowances. | In 2009, in the wake of the parliamentary expenses scandal, MPs were advised to pay capital gains tax on the sale of any home for which they had claimed allowances. |
But a spokeswoman for Mrs Miller, MP for Basingstoke, told the BBC her claims had ceased the month before she received the new advice. | But a spokeswoman for Mrs Miller, MP for Basingstoke, told the BBC her claims had ceased the month before she received the new advice. |
Of the Telegraph's story, she said: "This is nonsense. It is well documented that Maria stopped claiming any accommodation allowance at all in 2009." | Of the Telegraph's story, she said: "This is nonsense. It is well documented that Maria stopped claiming any accommodation allowance at all in 2009." |
She added: "She will of course deal with the matter in accordance with HMRC rules and pay any tax that is due." | She added: "She will of course deal with the matter in accordance with HMRC rules and pay any tax that is due." |
The row over the culture secretary's expenses dates back to December 2012, when the Telegraph reported she had claimed £90,718 in expenses towards mortgage payments on the house in Wimbledon that the MP shared with her parents. | The row over the culture secretary's expenses dates back to December 2012, when the Telegraph reported she had claimed £90,718 in expenses towards mortgage payments on the house in Wimbledon that the MP shared with her parents. |
'Crisis point' | |
The parliamentary commissioner for standards, who conducted an investigation into the culture secretary's expenses, ruled she should repay £45,800 but the House of Commons Committee on Standards, which has the final say on issues on ethics and disciplinary matters, cut this to £5,800. | The parliamentary commissioner for standards, who conducted an investigation into the culture secretary's expenses, ruled she should repay £45,800 but the House of Commons Committee on Standards, which has the final say on issues on ethics and disciplinary matters, cut this to £5,800. |
The 13-strong committee is mostly made up of MPs and its three independent members are not allowed to vote. | The 13-strong committee is mostly made up of MPs and its three independent members are not allowed to vote. |
Labour MP John Mann, whose complaint sparked the commissioner's investigation into Mrs Miller's claims, has asked Commons Speaker John Bercow to grant an urgent question on reform of the committee. | Labour MP John Mann, whose complaint sparked the commissioner's investigation into Mrs Miller's claims, has asked Commons Speaker John Bercow to grant an urgent question on reform of the committee. |
He said: "The Standards Committee's recent decision to overrule the conclusions made by the Independent Commissioner for Standards, Kathryn Hudson, in the case of Maria Miller has highlighted the problem of MPs regulating their own expenses. | He said: "The Standards Committee's recent decision to overrule the conclusions made by the Independent Commissioner for Standards, Kathryn Hudson, in the case of Maria Miller has highlighted the problem of MPs regulating their own expenses. |
"Public trust in Parliament and in the expenses system has now completely eroded, and we need a new, transparent regulatory system." | "Public trust in Parliament and in the expenses system has now completely eroded, and we need a new, transparent regulatory system." |
Mr Mann said the committee's power to rule on MPs' expenses should be abolished, adding: "I hope that the Speaker will grant this request, as faith in politicians is at crisis point and urgent action is required." | Mr Mann said the committee's power to rule on MPs' expenses should be abolished, adding: "I hope that the Speaker will grant this request, as faith in politicians is at crisis point and urgent action is required." |