Press Release: Spencer Gardner Dickins warns public may pay price over expenses

A leading regional accountant is warning that the public may have to pay for the MPs’ expenses scandal when Alistair Darling makes his pre-budget statement next month.

Darling will outline his financial proposals to Parliament on December 9 and David Thomas, of city-based Spencer Gardner Dickins fears that people with two homes could be hit by new legislation.

The practice of “flipping” – where MPs could financially benefit from re-designating which of their homes was their main residence – has led to widespread condemnation of parliament.

Leading MPs – including Darling – were found to have flipped their homes in details leaked to the Daily Telegraph and Thomas thinks there is a chance measures might be introduced to prevent the practice among members of the public.

He said: “At present anyone with a holiday or second home can choose which is designated as their main residence and thereby avoid capital gains tax when they sell the property.

“That is viewed as a perfectly legitimate practice outside Parliament – when people are not having their housing costs met from the public purse – but it has now very much come into the limelight because of the MPs’ expenses saga.

“There is a concern, particularly given the Chancellors need to increase taxation, that he might try to crack down on flipping in all cases which would mean people dipping out just because of the actions of MPs – including Darling himself.

“We have certainly had people coming to us expressing that concern and while we will only find out on December 9, the rumours are certainly beginning to gather weight.

“It is certainly an eventuality which has to be considered and there are ways in which people with a second or holiday home can escape paying capital gains tax on either property but they need to plan – and probably best to do it before Mr Darling takes to his feet!”

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