New chief secretary defends lack of CGT payout on his home

The new chief secretary to the Treasury Danny Alexander has been forced to
defend himself against claims that he failed to pay CGT on his second home.

Taking over from David Laws who stepped down after controversy over his
expenses claims on flats owned by his partner, Alexander insisted he had stuck
to the rules.

He had sold his London flat, on which he had claimed more than £37,000 in
expenses, without paying CGT.

But under the rules he was exempt from paying the tax for three years after
buying a second property on the condition that it used to be the main residence.

‘I paid all the taxes required but CGT was not payable on the disposal of my
flat. I have already publicly declared that I will pay capital gains tax if the
time comes for me to sell my [new] second home,’ said Alexander.

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