Blears expenses come under renewed scrutiny

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Talk of the town: Hazel Blears, who yesterday announced she was quitting the Cabinet, is back in the spotlight over expenses

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".