Greg Barker to pay £10,000+ capital gains tax

The MP for Bexhill and Battle told the Observer it was "vital for MPs to be beyond reproach if we are to rebuild confidence in politics".

Mr Barker did not disclose how much he would repay, but the sum is expected to top 10,000.

Last week the Telegraph alleged Mr Barker had made a profit of 320,000 in just over two years by selling a flat he had bought with the help of parliamentary expenses.

Mr Barker bought the flat in Pimlico for 480,000 in November 2004 before selling it for 800,000 in February 2007 and moving back to his former London address in Cheyne Row.

He did not pay capital gains tax on the profit made from this sale, or on the sale of the Cheyne Row property, which sold for 525,000 in 2007.

Mr Barker has also decided not to continue claiming for mortgage interest payments on his properties.

He said: "I have never made a frivolous claim or abused the system.

"It is true, however, that a change in my personal circumstances in 2006 necessitated a change in living arrangements in London. However, the reported "profit" on my Pimlico home when I moved has been greatly exaggerated.

"Reported figures took no account of the major works undertaken, which cost a substantial six-figure sum, all of which were paid for privately by me, and none of which were funded by the taxpayer.

"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.

"Furthermore, I will go further than the new ethical guidelines and will decline to claim any mortgage interest in the future. 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."