A crowdfunded campaign of UK Landlords opposing the Government’s proposed tax changes on buy-to-let properties, have today been denied the chance to refer the legislation at a judicial review.
During the 90-minute hearing at the Royal Courts of Justice in London this morning, the “Axe the Tenant Tax” campaign was outlined and given the chance to explain why it should have its case heard at a review. The judicial review the campaign was seeking to be granted, is a court based proceeding that allows a judge to review the lawfulness of a decision made by a public body. HMRC outlined the counter case for upholding the proposed changes, and having been successful in this hearing, will now press on with the changes planned for implementation in 2020.
A campaign backed by concerned landlords
The campaign, started by landlords Steve Bolton and Chris Cooper, raised over £100,000, thanks to the backing of over 800 individuals. Spearheading the campaign at the Royal Courts of Justice was Cherie Blair QC’s Omnia Strategy LLP.
The appeal centred around the proposed Section 24 of the Finance (No. 2) Act 2015, which sought to prevent landlords with mortgages from offsetting their mortgage interest costs against their rental profits before calculating tax.
A changing fiscal landscape
Steve Bolton, who owns Platinum Property Partners, was quoted on Letting Agent Today commenting on the judgement: “It has completely missed the opportunity to protect tenants, landlords and the housing market from the disastrous consequences of Section 24. Sadly, it will be tenants who are hit hardest; they are set to see unprecedented rent increases over the coming months and years, which will be a very clear and direct consequence of this ludicrous legislation.”
Andrew Turner, CEO of Commercial Trust remarked that: “This outcome came as no surprise, given the context and potential ramifications had it gone through. Landlords must now face into the changing fiscal landscape and manage their property portfolio’s accordingly. We will be supporting our landlord clients through this process of change.”