TaxAdministrationMPs exploit expenses rule loopholes

MPs exploit expenses rule loopholes

MPs are exploiting loopholes in expenses rules which enable them to slash their CGT bills

More than 100 MPs are accused of using huge sums in parliamentary allowances
to fund a second home while telling HM Revenue & Customs (HMRC) it is their
main household, avoiding massive capital gains tax (CGT) bills.

The Mail on Sunday reports a new crackdown to tighten rules on
allowances will do nothing to end ‘the really big fiddle’ – the CGT dodge which
is potentially worth tens of thousands of pounds to individual MPs.

Labour’s John Mann and Tory Mark Field have blown the whistle on the scam
which enables MPs under their expenses rules to claim up to £24,000 to help
maintain two homes – a family or constituency base and their London home where
they live during the week while the Commons is sitting.

Field, the MP for Cities of London and Westminster said: ‘(The MPs) would
argue it’s all totally within the rules but this system is unique to MPs. The
fact that the additional costs allowance is tax-free is a total fiddle. It is
little short of corruption.’
Further reading:

Read
the Mail on Sunday story

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