Advertisement

  1. National

Tax row rumbles on as Corbyn and Osborne release tax returns

The row over Prime Minister David Cameron's taxes, and those of other MPs, continues to rumble on despite Chancellor George Osborne and Labour leader Jeremy Corbyn both publishing their tax returns for last year yesterday.

It comes as it remains unclear who will be the next MP to make their finances open to public scrutiny.

David Cameron used a discussion about the issue in the Commons on Monday to hit back at "deeply hurtful and profoundly untrue allegations" that have been made against his late father during the current tax affairs row.

View all 51 updates ›

Cameron benefited from 'tax-free' Prime Ministerial perk

David Cameron claimed the 'prime ministerial expenses deduction' in 2010. Credit: Jonathan Brady / PA Wire/PA Images

David Cameron benefited from a little-known perk when he became Prime Minister in 2010, claiming £20,000 of his £142,500 salary tax free.

The 'prime ministerial expenses deduction' began in 1947, when it was set at £4,000, to cover costs incurred by the occupant of Number 10 in the course of official business.

After claiming the allowance in 2010/2011, Mr Cameron voluntarily declared extra taxable income to cancel out the perk in subsequent years before officials found a way to waive it entirely from 2014/2015.

A Downing Street source said by the time Sir John Major left office in 1997 the allowance stood at £8,000 but it rose to £20,000 during Tony Blair's term in Number 10.

More on this story