Aug. 22 (Bloomberg) -- U.K. Members of Parliament claimed more than 78 million pounds ($142 million) in expenses in the past year, with many using loopholes to employ family members and invest in property, the Sunday Times reported.

MPs claim an annual average of 119,000 pounds each in expenses, the Times said. They cost the taxpayer more than 200,000 pounds each, once their 56,358 pounds salary and 13,526 pension contributions are taken into account, the paper said.

At least 48 MPs employ relatives, ensuring staff expenses remain in the family, with the youngest being a 17-year-old son and the oldest a 77-year-old grandmother, the paper said, citing its own investigation of MPs' accounts.

The most lucrative area is property. MPs are allowed to use expense allowances worth up to 20,902 pounds a year to buy houses, the newspaper said. The mortgage is often paid by the taxpayer, while the MP keeps the capital gain, the paper said.

(Sunday Times 8-22 p. 1)

To contact the reporter on this story: Elena Moya in London at moya@bloomberg.net.

Last Updated: August 22, 2004 07:24 EDT