Downing Street Says » MPs Expenses

Asked if the Prime Minister thought that the expenses claims made by Geoff Hoon or James Purnell were unacceptable, the PMS said that James Purnell and Geoff Hoon had given detailed explanations of their situations in relation to Capital Gains Tax and people would have seen the detailed statements from both of them. They had also sought advice from HMRC. On the basis of those explanations, the Prime Minister was confident that they had both acted in a way that was consistent with both the letter of the law and the spirit of the rules.

Asked if the Prime Minister wanted either of them to pay money back, the PMS replied that there was a parliamentary process for issues relating to expense claims, but in relation to tax, Mr Purnell and Mr Hoon had given detailed explanations and sought advice from HMRC; on the basis of those explanations, the Prime Minister was confident that they had acted in a way that was consistent with both the letter and spirit of the law.

Asked what the rules were in relation to when Ministers should pay Capital Gains Tax on second homes and when they shouldn t, the PMS said that in relation to the explanations that we d seen, it was clear that they had acted in a way that was consistent with both the letter and spirit of the law.

Asked what the difference was between the situation with Hazel Blears and the situation with Geoff Hoon and James Purnell, the PMS replied that it was clear from their statements that there was no Capital Gains Tax liability on either of their property transactions. This was not related to how they were designating their first and second home allowances for parliamentary expenses reasons.

In Mr Hoon s case, it was clear that his second home designation was always his house in his constituency and he had not changed that. In James Purnell s case, he had rented out his London flat for a short period of time and no capital gains liability arose as a consequence. Asked if Mr Hoon and Mr Purnell had spoken to HMRC after the allegations were made or before, the PMS said that people would have to ask them that question.

Asked whether the Prime Minister was confident that the public would see the difference between these two cases and Hazel Blears situation, the PMS said that it was important to act on the basis of the facts and the facts were set out in James Purnell s statement and they were set out in Geoff Hoon s statement. This was the basis on which we were operating and the Prime Minister was confident that the spirit and the letter of the law were adhered to.

Asked what the Prime Minister was referring to when he had called the situation surrounding Hazel Blears conduct as unacceptable, the PMS replied that Hazel Blears herself took the decision to repay money in order to avoid any ambiguity and the Prime Minister supported that. Asked if the Prime Minister thought it was acceptable for MPs to sell their designated second home and declare it as a primary residence to HMRC, the PMS said that Capital Gains Tax was a complicated issue; no liability had arisen as a result of these two transactions. On the basis of the explanations that had been given, this did not appear to relate to any issue relating to parliamentary allowances.

Asked if the Prime Minister had talked the issue through with Mr Hoon and Mr Purnell, the PMS said that Mr Hoon and Mr Purnell had been discussing this with the Cabinet Office as people would expect.

Asked when the report on Shahid Malik would be published the PMS said that he had no more information on that at the moment. Asked when Ministers expenses would be published, the PMS said that it could be within the next week or so.

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» Thursday, May 21, 2009

MPs Expenses

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