Work and pensions secretary James Purnell claimed expenses for accountants’
advice on the sale of his London flat, on which he paid no capital gains tax.
Purnell claimed £395 expenses for ‘tax advice provided in October 2004 regarding
sale of flat’.
He informed parliament officials that his home in Manchester was his main
residence, while the taxman considered his home in London as his primary
residence, reports the Daily Telegraph.
Transport secretary Geff Hoon did not pay CGT on the sale of his London home
in 2006. The property had been rented out for four years prior to its sale, the
Last night, a spokesman for Mr Purnell said allegations about him avoiding
CGT were ‘untrue’.
‘When he bought his constituency home, the sale of his London flat fell
through, but it was sold within the period that HMRC continue to treat it as not
being liable for CGT. No one pays CGT when they sell the only house they own and
James was not liable for capital gains tax on his London flat,’ said the
Mr Hoon said: ‘I reject any suggestion of any wrongdoing in relation to my
declarations to the House of Commons authorities and HMRC. I have been
consistent in my declarations to both parties and I have been assiduous in
ensuring that I have met my reporting obligations and my tax liabilities.
‘In 2006 the property was sold. A full tax declaration was made on my behalf
by a reputable company of chartered accountants. They advised – and this was
agreed by the Inland Revenue – that there was no liability for capital gains
He added that his tax arrangements were recently reviewed by HMRC, which
confirmed that there was no liability for CGT.
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