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It has been revealed that the Chancellor Alistair Darling held talks with some of the UK largest banks yesterday in a bid to try and avert a banking crisis in the UK. The meeting was attended by...
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Sunday 29th June 2008
The ongoing drip feed of scandal and intrigue in the area of MPs expenses seems set to move to a new level over the next few weeks with a number of changes expected. However, a new so called scam has been revealed whereby MPs are able to use their second home allowances on one home (usually in London where costs are higher), while declaring the same home as their primary residence for capital gains tax purposes. If this is proved to be popular amongst MPs this could literally be the biggest scandal to hit the Commons in years.
To clarify the situation, anyone who has more than one home will not pay capital gains tax on their main residence, i.e. the home at which they spend most of their time, but they will pay capital gains tax on any additional homes when they are sold. The current second home allowance for MPs allows them to use an allowance of just over £20,000 a year to cover interest payments on a mortgage on their second home – i.e. the home which they use as a base for their constituency business.
However, it seems as though some MPs are claiming the ‘second home’ (which uses tax payers money) is their main residence with the tax office, hence they would not be liable to capital gains tax on any future sale. |
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