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MPs agree to hand back profits from taxpayer-funded homes

MPs agree to hand back profits from taxpayer-funded homes

Politicians have agreed to hand back hundreds of thousands of pounds worth of profits from taxpayer-funded homes.

The Independent Parliamentary Standards Authority (Ipsa) is publishing details of repayments by 70 MPs.

The watchdog moved to ban the use of Commons expenses to pay mortgage interest in May 2010 in the wake of public fury over “flipping” homes and other abuses.

Transitional arrangements were put in place permitting MPs elected before 2010 to keep claiming the money up to last August, however, as long as they agreed to return any potential capital gain.

Some 71 members received an estimated £1 million in allowances for mortgage interest during the period.

The properties were formally valued at the beginning and the end, and the MPs were given until November 30 to return a proportion of any gain.

Ipsa said it would consider a longer repayment schedule possibly until 2015 if returning cash quickly would “create hardship”.

But the process was delayed when a number of MPs signalled they were considering a legal challenge on the grounds that the watchdog had overstepped its powers.

Repayment deals are now thought to have been struck with 70 of the MPs, with only one case still to be settled.

Treasury minister David Gauke is already said to have returned £40,000, while former minister Jim Paice is believed to be repaying £9,000.

Ipsa is expected to release details of how much each politician owes and their repayment timetable alongside the latest tranche of expenses claims this morning.