Landlords fight back over The Tenant Tax: Cherie Blair QC is to represent the organisation called, ‘Axe the Tenant Tax’ at a permission hearing for judicial review of section 24 of the Finance Act 2015 on Thursday 6th October 2016 at the Administrative Court, Royal Courts of Justice, WC2A 2LL
The organisation says that changes proposed in Section 24 of the Finance (No.2) Act 2015 will stop buy-to-let finance costs (largely mortgage interest) being a claimable business expense. This means, they say, that most landlords with mortgages will now have to pay tax – The Tenant Tax –on their turnover rather than their profit and no other business in the UK is treated in the same manner.
Many landlords will have to pay extra tax of 20 per cent or more of their mortgage interest payments. The tax they pay might be greater than their real profit, leaving them with a rental loss and a cash shortfall. This tax will only affect individuals who own rental properties in their own names, like the millions of smaller landlords in the UK. Companies owning buy-to-let property and wealthy cash investors are excluded from the tax.
Co-claimants Steve Bolton, Founder of Platinum Property Partners, and Chris Cooper, a fellow landlord and airline cabin crew member, are pursuing a Judicial Review of this legislation against the Government and HMRC. They are represented by law firm Omnia Strategy LLP, led by Cherie Blair MBE QC.
Axe The Tenant Tax is challenging the proposed tax changes on the basis that Section 24:
- Is a failed tax experiment from Ireland where rents increased 50 per cent in three years and was scrapped by the Government as a result
- Is an unfair tax on tenants and non-corporate landlords and will distort market competition
- Will increase rents substantially
- Is a bad tax policy that breaks Generally Accepted Accounting Principles (GAAP)
- Will make the UK housing crisis worse
The result of the permission hearing will be issued on Thursday 6th October. To find out more please contact Twc.PlatinumPartners@instinctif.com / 0207 427 1431.
A copy of the full case against Section 24 can be downloaded here.
If landlords lose their tax breaks, we lose thousands of rental homes.
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