Kevin Reed, Accountancy Age, Tuesday 1 June 2010 at 08:54:00

Danny Alexander sticks up for a lack of CGT payment on sale of his second home in London, on which he had claimed 37,000 in expenses


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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