HMRC to investigate MPs capital gains tax
11 May 2009, Accountancy Age, AccountancyAge
http://www.accountancyage.com/aa/news/1788481/hmrc-investigate-mps-capital-gains-tax
HM Revenue and Customs will investigate whether MPs have deliberately evaded capital gains tax when selling their second homes, the Guardian has reported.
The news comes after a series of leaks about the way MPs have used Commons' allowances for personal gain.
Home secretary Jacqui Smith registered the house she shared with her sister in south London as her primary residence, which meant she could claim the parliamentary allowance of up to £24,000 for her family home in Redditch.
Her actions were criticised in an article in the Observer by former chairman of the committee on standards in public life, Alistair Graham. A spokesman for Smith said she would be seeking legal advice following his comments.
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Visitor comments
Second homeaa
Will Jacqui Smith be paying for the legal advice herself or will the taxpayers be paying?
Posted by: John S , 11 May 2009 | 00:00
Wholly Exclusively and Necessarily
Can HMRC investigate MP's expenses claims too! Some of them look extremely dubious as to being "Wholly, Exclusively and Necessarily" Incurred!
Posted by: Terence Guy FCCA ATII , 11 May 2009 | 00:00
MP's and tax evasion
HMRC should be investigating all MP's expense claims and collecting income tax on all the expenses paid which were not wholly exclusively and necessarily incurred in the performance of their duties. Any MP's subsequently assessed to income tax should be named and shamed. If P11D procedures have not been followed their employer should be fined and dealt with like any other. Re assessing CGT on second homes it would appear that there are a group of MP's who have been serial arrangers of repeated sequences of preordained property transactions. If they were not MP's they would pay tax on their profits. For repeat property transactors the tax payable is Income Tax, not CGT.
Posted by: Chris Try , 11 May 2009 | 00:00
Tradition
I thought it was traditional to ask to see your lawyer after the police start to interview you.
Posted by: Paul , 12 May 2009 | 00:00
Tax doesnt have to be taxing for MP's
I think also a wider debate needs to be had on the apparent neutering of HMRC for such an apparently long period of time in this respect?
Independence, rule of law,equality before the law etc.
Constitutional reform and seperation of powers?
Yes, but not by this lot! roll on the election.
Posted by: sm , 16 Jun 2009 | 00:00