Blears on defence over expenses
- Press Association, Sunday May 10 2009
Communities Secretary Hazel Blears has defended herself amid fresh questions over her expenses.
Speaking to reporters outside her house in Salford, Ms Blears insisted she had complied with all the relevant rules, but acknowledged the public "hate" the current expenses regime and said a group of "ordinary people" should be involved in drawing up the new system.
The backlash came after she admitted she did not pay capital gains tax on profit from the sale of a London flat.
Ms Blears sold the property in Kennington in August 2004 for £200,000, making £45,000 profit.
The flat had been designated as her "second home" under Commons rules, meaning she was able to claim back thousands of pounds in mortgage interest and running costs.
But the Salford MP confirmed she had not been liable for any capital gains tax - indicating that the flat was simultaneously registered with the taxman as her primary residence.
A spokesman for Ms Blears said: "Hazel has complied with the rules of the House authorities and (HMRC). No liability for capital gains tax arose on the sale of her flat in Kennington."
Capital gains tax is charged at 40% when you sell a property not regarded by the taxman as your main residence, meaning that Ms Blears could have been forced to pay out £18,000.
The news emerged after receipts leaked to the Telegraph revealed that Ms Blears received expenses towards three properties in a single year.
Copyright (c) Press Association Ltd. 2009, All Rights Reserved.
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