You are here: Home - Mortgages - Buy To Let - News -

Landlords battling HMRC over tax relief changes ramp up legal fight

Written by: Samantha Partington
Campaigning landlords led by Cherie Blair QC have launched phase two of their attack on the government’s decision to prevent them from deducting mortgage interest from their rental income before they are taxed.
Landlords battling HMRC over tax relief changes ramp up legal fight

Following the launch of their legal case in February, private landlords Steve Bolton, founder of Platinum Property Partners, and Chris Cooper, have set out to raise a further £250,000 to take their fight to court.

The pair want HMRC and the Treasury to abolish the ruling, set to be phased in from 2017, which will see individual landlords taxed on their turnover rather than profit as the right to deduct mortgage interest is taken away. At the same time, the maximum amount of tax relief which can be claimed by landlords on their mortgage payments will be reduced from 45% to 20%.

Blair’s law firm, Omnia Strategy, is challenging the ruling on the grounds it is a breach of individual landlords’ human rights because they are being treated differently to their corporate counterparts.

To launch the legal case, Bolton and Cooper, appealed for donations through the crowd funding platform, Crowd Justice. They raised £50,000 in eight days. The campaign page, ‘Tenant Tax’, has been reopened as they attempt to raise the next slice of funds needed to progress the campaign.

Bolton believes that if the tax changes go ahead unchecked, those landlords affected most severely will either sell up, reducing the stock of rental properties, or hike up rents to remain profitable.

“The days where ‘nobody loves a landlord’ must come to an end,” said Bolton. We need to unite to show that we will not accept the victimisation of landlords and tenants by the out of touch political elite.”

He added: “The Tenant Tax is wrong on every level and if we allow a normal business expense to become a taxable expense for landlords, who will be next; corporate landlords, shopkeepers, small business owners or anyone who has used finance to help expand their business?”

The campaigners are holding an event, Tenant Tax Summit – Landlords Fight Back, on 9 June at the ILEC Conference Centre in Earls Court. The event is being supported by firms with interests in the private rental sector such as, Shawbrook Bank and Propety 118.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week