CULTURE Secretary Andy Burnham became the latest Cabinet minister to face questions about his capital gains tax liabilities over a £16,600 property windfall.

He was paid the money by a developer as an incentive to move out of a Westminster flat, in Dolphin Square apartment complex, that he rented out from his taxpayer-funded second home allowance.

A tax specialist said the money would be subject to capital gains tax.

However, Newton-le-Willows-born Mr Burnham passed the sum on to the Commons Fees Office and then used the money to improve his new flat in Lambeth, avoiding an estimated tax bill of up to £6,665.

He said yesterday he processed the money through his Additional Costs Allowance (ACA) claims to ensure transparency.

The arrangement meant the taxpayer had not funded his move and had actually kept some money, he said.

But anti-sleaze campaigner and former independent MP Martin Bell told the Sunday Times: “Both he and the Fees Office have made very serious errors.

“He should explain himself to the Labour Party’s star chamber. They cannot overlook this case just because he’s a minister.”

The payment made by the new Dolphin Square owners was actually £18,230, but Mr Burnham spent only £16,664 of it.

Tax specialist Mike Warburton, of accountants Grant Thornton, said: “In my view, the receipt of a capital sum in these circumstances would be subject to capital gains tax.”

In a statement, Mr Burnham said:

“It is plain wrong to suggest that I set out to avoid paying tax,” he said.

“I passed this money over in full to the fees office to save public funds being used for my move. At no stage did I make any personal profit.

“I acted at all times on advice from the Fees Office. I have since sought further clarification, and am discussing the technicalities with the Fees Office and HMRC, but there are no outstanding tax issues.”