Tomorrow will see Cherie Blair in action at the High Court, representing the Axe the Tenant Tax lobby group which is seeking permission to bring a judicial review of proposed tax changes for buy-to-let landlords
The group argues that the 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 that most landlords with mortgages will now have to pay tax on their turnover rather than their profit, which it says is contrary to the way all other businesses are treated.
Axe the Tenant Tax is an umbrella coalition of individuals and organisations who represent more than 150,000 landlords. 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 on behalf of the group. They are represented by law firm Omnia Strategy, led by Cherie Blair.
The group says the proposal is unfair, as it will only affect individuals who own rental properties in their own names, who face paying extra tax of 20% or more of their mortgage interest payments. Companies owning buy-to-let property and cash investors are excluded from the tax.
The outcome of the permission hearing will be known on Thursday.
