Expenses row: Barker latest

The decision was announced on Thursday evening, following conversations Mr Barker had that day with the Observer, in which he said he was, "checking whether the capital gains tax was paid in accordance with the new revised guidance that has just been issued."

On Friday morning he released a statement saying: "All of my tax affairs for the years in question were in order and based on prudent, professional tax advice. But in light of the growing public concern about the whole system of expenses, it is vital for MPs to be beyond reproach if we are to rebuild confidence in politics.

"Mindful of the example set by David Cameron and the Shadow Cabinet, I have decided myself to make a voluntary payment to the Inland Revenue of the Capital Gains Tax payable on the sale of both properties that I have owned in London since becoming an MP in 2001."

Mr Barker has also decided to stop claiming for mortgage interest payments. He said: "It does not matter that all of my claims and tax affairs have always been scrupulously within the rules. What counts, and what I value above all else, is the trust and good opinion of my constituents."

Mr Barker dismissed figures of 10,000 revealed by the Telegraph as the approximate amount of tax he would pay as 'totally erroneous".

He said he would not know the true figure until professional advice clarified which of his own expenses he could offset, and repeated his assertion that profit from his properties in Chelsea and Pimlico was "substantially less" than the 320,000 reported by the Telegraph.

His flat in Pimlico was bought for 480,000 in November 2004, and sold for 800,000 in February 2007.

A second property in Cheyne Row, just over one mile west of Pimlico, sold for 525,000 in 2007. Mr Barker claimed over 31,000 mortgage interest on both properties.

Alistair Darling set capital gains tax at a flat rate of 18% on gains over and above the current annual exemption of 10,100 in January last year.

While CGT is owed on the sale of second homes, it is not usually paid when selling a main home. MPs such as Hazel Blears have attracted criticism for designating one property as a second home for tax purposes and another as their second home when claiming the Additional Costs Allowance.

Also on Friday, Mr Barker posted a rough breakdown of his expenses on his website, www.gregorybarker.com. The figures are taken from those published by Commons authorities in March, which showed him to have claimed the most expenses of MPs in Sussex.

Mr Barker said he would wait for the Commons Fees Office to publish a comprehensive set of his receipts and accounts, then make them available on his website.

He anticipated this would happen within "two or three weeks", and said he would not be following Hastings and Rye MP Michael Foster's decision to hand his expenses over to the Observer.

He said that although he had no problem "in spirit" with his expenses being examined, he was satisified with the official timescale.

Mr Barker said he hoped the resignation of Speaker Martin announced on Tuesday, and the new restrictions governing MPs expenses would go some way towards restoring public confidence in the system.

He said: "I think the Speaker's departure is the right thing. I'm sorry that he didn't go sooner but his position would have been untenable had he tried to continue. I hope now that we will get a strong independent figure who can drive through the reform we need, and has the poltical authority to ensure all recommendations from the Kelly Report when published are fully implemented.

"Half measure and compromises in favour of the old status quo will not be acceptable."

Mr Barker said he envisaged no "quick fix" for those constituents who were angry at the system or at individual members of Parliament.

He said: "I think the only thing to do is work hard in good faith and show that we're listening, that we are contrite enough to take on the harshest critisicms, even if some is unfounded, and show that we mean to change.

"I hope that all of those who are feeling angry now will over the coming weeks and months have the opportunity to see how I respond and how seriously I take these issues."

"What I won't do is allow these issues, important as they are, to distract me from my number one job which is addressing the problems and concerns of my constituents of Bexhill and Battle.

"It's their problems and hardships which are the most important."