16 May 2009

Bunch of flipocrites

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Bunch of flipocrites


SNOUTS-in-the-trough MPs will FINALLY face an investigation today into their mickey-taking expenses — as the TAXMAN goes gunning for them.

It follows claims dozens cheated the Exchequer by flogging tarted-up second homes in a dodge called “flipping”.

The probe involves Capital Gains Tax — which sellers must pay on anything other than a MAIN home.

The inquiry was revealed as £600,000 was last night set aside by the Commons to police grasping MPs’ future expenses.

Greedy members who get huge payouts to maintain pads they usually keep near Parliament are feared to have pursued the “flipping” expenses scam — changing their main address — to duck tax.

Crazy

Under ludicrously lax Commons expenses rules they are entitled to claim mortgage subsidies and a raft of other crazy payouts on whichever home they designate their second one — even if it is miles away.

But investigators fear some have taken it too far by telling porkies to HM Revenue and Customs.

The probe is being launched after it emerged Communities Secretary Hazel Blears escaped an £18,000 tax bill when she flogged a London flat — even though she had deemed it her second home to bag Commons expenses on it.

The flat in Kennington was sold for £200,000 — netting her a £45,000 profit in August 2004.

In a classic case of “flipping”, the Salford MP had previously listed her family home in her constituency as her second one.

That switch — in March 2004 — allowed her to claim for an £850 TV and VCR.

She even put in expenses for a £651 mattress. The following month she “flipped” back — saying the flat was her second home.

After selling it she bought another pad in London and lost no time in telling the fees office THAT was now her second home.

Within months she had claimed for groceries, furniture worth £4,874, an £899 bed — and ANOTHER new TV, costing £913.

Tax officials last night refused to comment on their inquiry. Capital gains is levied at 40 per cent.

A spokesman for Ms Blears, 52 — whose basic salary is £104,050 — said: “Hazel complied with the rules of House authorities and Revenue and Customs. No liability for Capital Gains Tax arose on the sale of her flat.”

Another minister in the taxmen’s sights is Welfare Secretary James Purnell. He too is said to have escaped paying capital gains.

Like Ms Blears, he insisted he stuck to the rules.

Sleaze fighter ... Sir Alistair Graham

Sleaze fighter ... Sir
Alistair Graham

Ex-Commons sleazebuster Sir Alistair Graham blasted: “Nobody’s got clean hands.”

Former Trade Secretary Stephen Byers claimed expenses topping £125,000 over five years on his girlfriend’s London flat.

The pad in Camden is owned by partner Jan Cookson. Health minister Ben Bradshaw was previously revealed to have claimed the entire mortgage interest bill on a property jointly-owned with his partner.

Even ex-PM Tony Blair got interest payments covered on his constituency home when he remortgaged for £296,000, ten times what he paid.

Former Home Secretary John Reid claimed for a £29.99 black glittery toilet seat and £199 pouffe.

Work and Pensions Minister Kitty Ussher begged Commons officials over work she wanted doing at her London house: “Pay as much as you are able!

Bleating

Five Sinn Fein MPs including Martin McGuinness and Gerry Adams raked in second home payouts of almost £500,000 despite shunning their Commons seats.

Other startling claims were a Labour backbencher’s 68p Branston Pickle and a colleague’s 46p Rich Tea Biscuits — while a Lib Dem claimed for batteries worth £3.69.

Last night Labour’s Sir Stuart Bell said the House of Commons Commission, on which he sits, will today approve a special “specific audit unit”, hived off from the fees office. It will vet every future claim made by an MP.

Earlier Labour’s Margaret Moran defended flipping her address to a SEASIDE home 100 miles from her Luton constituency.

She said her partner lived there, declaring: “I have to have a proper family life and I can’t do that unless I share the costs of the Southampton home with him.”

Her bleating came despite Companies House and electoral roll records showing her partner Michael Booker lives with her... in LUTON.

g.pascoewatson@the-sun.co.uk

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