A crowdfunded campaign of UK Landlords opposing the Governments proposed tax increase on buy-to-let properties, are set to have their case heard at the Royal Court of Justice in London tomorrow morning.
The 90-minute hearing, set for around 11.30am, will see the “Axe the Tenant Tax” campaign, represented by Cherie Blair QC’s Omnia Strategy LLP, highlight how the proposed Section 24 of the Finance (No. 2) Act 2015, will see landlords around the country face tax changes from the start of 2017.
The changes would seek to prevent those landlords with mortgages from offsetting their mortgage interest costs against their rental profits before calculating tax. If the legislation is upheld, it would strive to reclassify a ‘normal business expense into a ‘mortgage interest relief’.
Steve Bolton, chairman and founder of Platinum Property Partners, said of the proposed tax change on the company’s website:"This tax grab is unfair, undemocratic and underhanded, and we believe it is unlawful on a number of points. In no other business are costs wholly incurred to fund the business liable for taxation. In addition, there is no substantiation in the Government’s proposal that the changes will create a level playing field between homeowners and buy-to-let landlords."
The campaign, started by landlords Steve Bolton and Chris Cooper has raised over £100,000 to help fund their legal challenge.
We will report on the outcome of the hearing when it is announced.