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'Duck island' claim MP to retire 'Duck island' claim MP to retire
(about 2 hours later)
A Tory MP is to retire after admitting he claimed a £1,645 "duck island" on expenses - as two Labour ministers face questions over capital gains tax.A Tory MP is to retire after admitting he claimed a £1,645 "duck island" on expenses - as two Labour ministers face questions over capital gains tax.
Sir Peter Viggers, whose gardening claims totalled £30,000, is to quit at "the direct request of David Cameron".Sir Peter Viggers, whose gardening claims totalled £30,000, is to quit at "the direct request of David Cameron".
Meanwhile James Purnell and Geoff Hoon deny any wrongdoing over the sale of their designated "second homes". Meanwhile James Purnell and Geoff Hoon deny any wrongdoing over the sale of their London homes.
And Tory whip Bill Wiggin says he made a mistake in claiming for a mortgage that did not exist on his second home.And Tory whip Bill Wiggin says he made a mistake in claiming for a mortgage that did not exist on his second home.
Following a Daily Telegraph report, Leominster MP Bill Wiggin said he had meant to claim on his London home.Following a Daily Telegraph report, Leominster MP Bill Wiggin said he had meant to claim on his London home.
And, in the 14th day of Daily Telegraph revelations, former cabinet minister Ruth Kelly defended herself over reports she claimed for flood damage despite having insurance.And, in the 14th day of Daily Telegraph revelations, former cabinet minister Ruth Kelly defended herself over reports she claimed for flood damage despite having insurance.
'Substantial sum''Substantial sum'
After hearing about the latest expenses revelations, Tory leader David Cameron told Gosport MP Sir Peter he faced the removal of the whip if he did not announce that he would withdraw at the next election, the BBC has learned.After hearing about the latest expenses revelations, Tory leader David Cameron told Gosport MP Sir Peter he faced the removal of the whip if he did not announce that he would withdraw at the next election, the BBC has learned.
The Conservative scrutiny panel will decide what figure Sir Peter will have to pay back. Sources say it will be a "substantial sum".The Conservative scrutiny panel will decide what figure Sir Peter will have to pay back. Sources say it will be a "substantial sum".
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 Transport Secretary Geoff Hoon
Sir Peter said the claims he made "were in accordance with the rules at the time, and were all approved by the fees office".Sir Peter said the claims he made "were in accordance with the rules at the time, and were all approved by the fees office".
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 Transport Secretary Geoff Hoon
He added: "As with all other Conservative MPs my expenses are being examined by David Cameron's scrutiny panel and I await any recommendations they may make."He added: "As with all other Conservative MPs my expenses are being examined by David Cameron's scrutiny panel and I await any recommendations they may make."
Mr Wiggin said he had intended to claim for interest on the mortgage on his London home, but made a mistake in putting his constituency home on the internal form. Work and Pensions Secretary James Purnell and Transport Secretary Geoff Hoon were reported not to have paid capital gains tax when they sold properties they had claimed expenses on as their second homes.
Communities Secretary Hazel Blears has already repaid £13,332 CGT on the sale of her second home, in response to anger among her Salford constituents.
Gordon Brown said this week it had been "totally unacceptable" it had not been paid earlier - although it did not break the rules at the time or the law.
He noted she had paid the money and said she had his "full confidence".
'Completely untrue'
Mr Purnell was reported to have sold his London flat in October 2004 - designated as his second home for Commons expenses purposes - but not paid capital gains tax.
Under tax rules, sellers can claim a property is a main residence for CGT purposes, as long as they lived there less than three years before the sale.
Mr Purnell's spokesman said the allegations were "completely untrue" as Mr Purnell had bought his constituency home at a time he was trying to sell his London flat.
MP Bill Wiggin: 'I filled out the form wrong'MP Bill Wiggin: 'I filled out the form wrong'
"The sale of his London flat fell through, but it was sold within the period that HM Revenue and Customs continue to treat it as not being liable for CGT," he said.
He said he now rents his "second home" so would not make any capital gains on it and had double checked with HMRC, which had confirmed he was not liable.
"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."
Mr Hoon reportedly did not pay CGT when he sold his London home for a large profit in 2006.
Tax liabilities
The Daily Telegraph says he had not lived in it for the previous four years, as he had been living in a "grace-and-favour" Whitehall flat - during which time his Derbyshire house had been his designated "second home" - but told tax authorities it was his "principal" residence.
He then bought a new London property and claimed second home expenses on that, it was reported.
Mr Hoon told the Telegraph: "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."
My claim was neither a ludicrous claim nor a phantom claim Ruth Kelly
He said he had bought the London home in 1991, before becoming an MP and had his tax declaration checked when he sold it in 2006 - he said HMRC had confirmed there was no liability for CGT.
Mr Cameron told GMTV that Mr Wiggin's claim for a non-existent mortgage was "a bad mistake but it looks like it's an honest mistake and he was not claiming money that he wasn't entitled to".
Mr Wiggin said he had intended to claim for interest on the mortgage on his London home, but made a mistake in putting his constituency home on the internal form.
"At no stage have I ever sought to mislead anybody," he said."At no stage have I ever sought to mislead anybody," he said.
He had always sent mortgage deeds and statements from his lender relating to his London property to the Commons Fees Office, to make it clear what he was paying, he said. 'Worthless' furniture
After 23 months the Fees Office spotted the error on the accompanying form, and he corrected it, he said.After 23 months the Fees Office spotted the error on the accompanying form, and he corrected it, he said.
"I only have one mortgage, it's on my London home which is my second home. I've only ever claimed public money on the mortgage I have got and it matches to the penny," he told BBC Breakfast."I only have one mortgage, it's on my London home which is my second home. I've only ever claimed public money on the mortgage I have got and it matches to the penny," he told BBC Breakfast.
He denied making money from the claims, and also denied any suggestion he had flipped his second home.
"I filled out the form wrong, so when they told me to fill it out correctly the newspapers count that as a flip, but all I did was fill it out correctly."
He said he had not yet spoken to David Cameron, who the Telegraph says was a contemporary of his at Eton.
My claim was neither ludicrous claim nor a phantom claim Ruth Kelly
The paper also alleges that Ms Kelly claimed thousands of pounds of taxpayers' money for flood damage to her second home, despite having a buildings insurance policy at the time.The paper also alleges that Ms Kelly claimed thousands of pounds of taxpayers' money for flood damage to her second home, despite having a buildings insurance policy at the time.
But she insisted that she made an entirely legitimate claim after flooding at her constituency home. She told the BBC that "my claim was neither ludicrous claim nor a phantom claim".
She told the BBC that "my claim was neither ludicrous claim nor a phantom claim", unlike others featured in the Telegraph. Ms Kelly argued that the furniture which needed replacing was "worthless" since it was 30 years old, having been inherited from her parents - and so could not have been claimed on insurance.
Ms Kelly argued that the furniture which she claimed to replace was "worthless" since it was 30 years old, having been inherited from her parents - and so could not have been claimed on insurance.
She said the rebuilding work was handled in her absence while she was juggling being a minister and the mother of four young children, but conceded that she did not explore whether she could have claimed on her building insurance.She said the rebuilding work was handled in her absence while she was juggling being a minister and the mother of four young children, but conceded that she did not explore whether she could have claimed on her building insurance.
Capital gains On Wednesday Commons leader Harriet Harman set out changes to MPs' expenses and said she would put Parliament "above reproach".
Meanwhile, two Cabinet ministers are challenging the Telegraph's claims that they avoided paying Capital Gains Tax. Meanwhile the leader of the Public and Commercial Services union has said in the face of a "morally bankrupt" government the union is to consult its members about putting up union candidates in future general elections.
A spokesman for the Pensions Secretary James Purnell said: "Any allegation that James avoided Capital Gains Tax is completely untrue. Mark Serwotka said they had been considering the prospect for some time over concerns on various issues like Royal Mail - and said the left of the party had effectively been silenced.
"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," the spokesman added.
Bill Wiggin, Sir Peter Viggers and Ruth Kelly's expenses are being scrutinised
"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. This would have been true for any taxpayer - there was no special treatment."
And Transport Secretary Geoff Hoon said he rejected "any suggestion of any wrongdoing".
He added: "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."
Union candidates
The latest revelations come after Commons leader Harriet Harman set out changes to MPs' expenses and said she would put Parliament "above reproach".
Immediate changes, agreed by party leaders, include a £1,250 a month cap on mortgage interest and rent payments.
Others are a ban on "flipping" second homes in 2009/10 and on claiming for furniture, cleaning and stamp duty.
The changes - which are temporary until an independent review of the whole system makes new recommendations in the autumn - were welcomed by the Conservatives and Liberal Democrat leaderships.
Meanwhile the leader of the Public and Commercial Services union (PCS) has said in the face of a "morally bankrupt" government the union is to consult its members about putting up union candidates in future general elections.
Mark Serwotka said they had been considering the prospect for some time, because it was concerning that on many big issues all the main parties agreed, for example with privatising post offices.
One hundred years after the unions decided it needed a labour party to represent the people, the left of the party had effectively been silenced, he said.
"We will ballot members on whether the time has come to intervene directly," he told BBC Radio Four's Today programme.
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