Grant Thornton says John Prescott should be paying up to £366,000 a year in tax on his grace-and-favour properties now that the deputy prime minister has had many of his responsibilities in Cabinet taken away from him.
The accountancy firm says it is difficult to see how Prescott’s arrangements would fall within the specific exemptions allowed. The Cabinet Office said official residencies were assigned to ministers on the grounds of security or so they could do their jobs better. It said it did not comment on ministers’ individual tax arrangements except to say they were complying with the rules.
Labour promised Prescott would be given new responsibilities as deputy prime minister.
References: The Daily Telegraph 08/05/06 page B1, The Guardian 08/05/06 page 5
