Hazel Blears Blears had been claiming MPs' second home expenses relating to the flat. She had made a £45,000 profit on its sale without paying capital gains tax. On 12 May she volunteered to pay the £13,332 capital gains tax she had avoided on the sale of her second home. It was subsequently claimed that Gordon Brown had ordered her to repay the sum. In Salford she was met by a number of angry protesters and stayed in a local hotel rather than at home. Following an investigation by Sir Thomas Legg, Blears was told to repay £225 in expenses in relation
Capital gains tax individuals is 18% and for companies was 15% (but in 2008 is 0%). Therefore, in 2008 the capital gain tax rate is 9% for individuals and 0% for companies. Not all types of assets are "capital assets". Capital assets include: real estate; shares; stakes in limited liability companies etc. Capital gains generally are exempt from tax. However, exceptions apply to the following assets: • Capital gains realised on the disposal of business assets (including real estate) and on the disposal of other assets that qualify as income from independently performed activities • Capital gains on liquidation of a company •