Claimed for three different London properties in one year and claimed nearly £5,000 for furniture in three months. It is also alleged that she switched her second home designation from her constituency house in Salford to a flat in South London, for which she claimed £800 a month second-home allowance for the mortgage. She is then said to have sold the flat for a £45,000 profit, on which she did not pay capital gains tax, because she advised HM Revenue and Customs that it was in fact her main residence. Blears responded by saying that all her claims were within the rules and that her furniture bill was "reasonable", although she did admit not paying capital gains tax on the property she sold.

On 10 May 2009, it was reported that HM Revenue and Customs are to investigate cases of possible capital gains tax evasion by MPs such as Blears. A spokesman for Blears said that there was "no liability" for capital gains tax from the sale. Blears said that the system was "wrong", though she had not broken the rules. She recommended that members of the public meet with an independent body to come to a resolution.