BORIS Johnson is to be probed by tax authorities over the £58,000 refurbishment of his Downing Street flat.
HMRC is seeking “clarification” over where the cash came from and whether it should have been declared, according to the i newspaper.
Tax chiefs told the paper that the Tory leader will be “treated like any other taxpayer” as they set out to establish if he “derived any benefit in kind” from the revamp at 11 Downing Street.
A source stressed there is no formal investigation into Johnson’s personal finances, adding: “Things like this are declared by UK taxpayers all the time and it is the role of HMRC to clarify with people if these are subject to tax. The Prime Minister is no different to anyone else in this regard.”
Reports have suggested the £58,000 came from a Conservative Party donor. If that was the case, and the funds were paid into a financial trust, the tax authorities should have been informed.
HMRC pointed out its request for clarification does not imply the PM failed to declare a tax payment he should have.
Fiona Fernie, a tax disputes and resolution partner at tax and advisory firm Blick Rothenberg, told i: “HMRC will always look for clarification if there is a chance that money wouldn’t have been received by someone unless it was because of the position they were in. HMRC would not want to be seen not to seek clarification from the Prime Minister when it would from anyone else.”
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Yesterday, International Trade Secretary Liz Truss insisted the Prime Minister paid the costs “from his own pocket”, but declined to say whether the money had been provided initially by a party donor.
Last week, the Daily Mail published emails sent to Tory party chairman Ben Elliot. In one, sent in October, Tory donor Lord Brownlow said he had given £58,000 to cover payments “the party has already made”.
No 10 has rejected any suggestions of wrongdoing. A spokesman said: “More information on works on the Downing Street estate, including the residences, will be covered in the Cabinet Office’s 2021 annual report and audited accounts. Any costs of wider refurbishment in this year have been met by the Prime Minister personally.
“The Government and ministers have acted in accordance with the appropriate codes of conduct.”
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