Hazel Blears -- endearing red-head though she is -- is in deep trouble. The latest Telegraph release:

"Miss Blears sold the property in Kennington, south London, in August 2004 for £200,000, making a profit of £45,000. She admitted last night that she did not pay capital gains tax (CGT) on the profit from the sale because "no liability" had arisen.

The admission suggested that Miss Blears declared the flat as her primary residence for tax purposes while at the same time telling the Commons authorities that it was her second home, a designation that enabled her to claim hundreds of pounds in parliamentary expenses.

What does Her Maj's tax gatherer say on this again?

CGT is liable to be paid on the profit from the sale of any property that is not classified with HM Revenue & Customs as a "main residence". At the time of the sale Miss Blears had informed the Commons authorities that the Kennington flat was her second home, enabling her to claim mortgage interest payments on it at £850 a month.

So Hazel, you may be "..within the rules..", but you've broken the law. So what'll it be: apologise or apologise and resign?


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