Cameron orders Tory MP to pay capital gains tax

News in pictures
News in pictures
On Facebook
From the blogs

Disclosure: We’d never even been to a club when we made our first single

For most of us, reaching eighteen years of age opens up a new world for exploration, spontaneity and...

Top of the posts: Drunken rants, the Western Fail and misogyny pushers

The most read blogs this week, as determined by stats.

Sepp Blatter: Penalty shoot-outs must remain, they’re football’s great leveller

As England supporters, we should scorn at any such deciding factor within football. On so many occas...

Why do some men consider the street as a female meat market?

Pronouncements on sexual inequality in the UK are normally met with an eye roll by my generation. As...

A Tory frontbench MP who avoided paying capital gains tax on the sale of her taxpayer-funded second home will have to repay money, party leader David Cameron said today.

Shadow justice minister Eleanor Laing insisted she was obliged by law to name the property as her principle residence for tax purposes.

But Mr Cameron said the practice was unacceptable and that anyone guilty of it should be expected to be punished by the internal party scrutiny panel he has set up to examine claims.

"I don't think it is right to get money from the taxpayer for what you nominate as a second home and then to sell it and not pay capital gains tax," he told BBC1's Politics Show.

"I put a stop to that immediately, even before the House of Commons, with my MPs. That applies for the future. For the past we go through the scrutiny panel and if people have got it wrong then money will have to be paid back.

"John Butterfill is another case and we are addressing that one too," he said.

Asked if Ms Laing would follow Andrew MacKay in being forced out over expense claims, he said: "Where appropriate, others will be removed from the front bench if they do not behave appropriately.

"I want to very tough but I also want to be consistent and fair."

The Daily Telegraph said Epping Forest MP Ms Laing avoided a £180,000 bill on profit from selling the property - two adjacent flats in Westminster on which she was said to have claimed more than £80,000 in allowances. .

She sold the flats last year for £1.8 million, making at least a £1 million profit, the newspaper said.

In a statement responding to its report, Ms Laing said she had consulted solicitors at the time of the sale and guidance to MPs on the issue "which clearly states that the designation of Primary Residence for ACA purposes is not the same as the designation of Primary Residence for HMRC purposes.

"I realised, on investigating the rules, that it would be wrong in terms of HMRC under the Taxation of Chargeable Gains Act 1992 to pay Capital Gains Tax on my London flat because, although I had always regarded the flat as my second home, my main home being in my constituency, the definition of Principal Private Residence for Capital Gains Tax purposes is not a matter of choice but a matter of fact," she said.

"As a matter of fact, under HMRC rules, the London flat was my Principal Private Residence. I will, of course, be liable to Capital Gains Tax when eventually I sell my house in Theydon Bois as, under the HMRC rules, it is defined as my second home."

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Patrick Cockburn: I fear this terrible massacre will be the beginning of a long civil war in Syria

Patrick Cockburn

I fear this terrible massacre will be the beginning of a long civil war in Syria
Hardeep Singh Kohli: For me, it is all about 'Gregory's Girl', a record of first love

Hardeep Singh Kohli

For me, it is all about 'Gregory's Girl', a record of first love
Christian Louboutin: 'I don't think comfort equals happiness'

Christian Louboutin interview

'I don't think comfort equals happiness'
Happy birthday, Hotel Babylon!

Happy birthday, Hotel Babylon!

Hollywood's home to the A-list celebrates 100 years of discreet luxury
Rupert Cornwell: Low-rise capital could finally reach for the sky

Rupert Cornwell: Out of America

Low-rise capital could finally reach for the sky
The secret life of the red carpet

The secret life of the red carpet

As Cannes reaches its climax with the Palme d'Or and the celebrities gather in London for the Baftas tonight, Kate Youde and Jack Dean investigate the real star of the show
It's not easy being Professor Green: The rapper, the heiress and a drama made in Chelsea...

It's not easy being Professor Green

The rapper, the heiress and a drama made in Chelsea...
Hardcore, hard-wired: How the prevalence of porn is changing our everyday lives

How porn is changing our lives

It's everywhere - from pop videos to fashion magazines to the theatrical stage.
River Phoenix: the final reel

River Phoenix: the final reel

Twenty years after the actor's death, his last film is to be released
Facebook: The shares shenanigans

Facebook: The shares shenanigans

Investors are crying foul over the huge losses they incurred when the social network site floated on the stock market last week
Up and away – how '7 Up' went global

Up and away – how '7 Up' went global

As the last episode of Britain's '56 Up' airs, the first episode of '28 Up', from the former USSR, starts. Then there's the US, Japan, Germany...
You'll soon pick this up: Tuck into Bill Granger's fresh street food

Tuck into Bill Granger's fresh street food

It provides perfect party fare for some fun in the sun...
All to play for: How is Ukraine shaping up ahead of Euro 2012?

How is Ukraine shaping up ahead of Euro 2012?

Peter Popham casts his eye over the state of the Euro 2012 co-host ahead of the tournament.
Red or not, here they come: Artists reimagine the iconic telephone booth

BT ArtBoxes: Red or not, here they come

Artists reimagine the iconic telephone booth...
The Last Word: Premier bullies devise youth system bound to end in tears

The Last Word

Premier bullies devise youth system bound to end in tears