Landlords legal fight against HMRC over tax relief changes
Posted on 02/05/2016 by Sulgrave Estates
Campaigning landlords have launched the second phase of their attack on the Government’s decision to prevent landlords deducting mortgage interest from their rental income before they are taxed.
The legal case was launched in February by private landlords Steve Bolton (founder of Platinum Property Partners) and Chris Cooper. They have set out to raise a further £250,000 to take their fight to court.
Mr Bolton and Mr Cooper want to see HMRC and the Treasury 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%.
To launch the case, Bolton and Cooper appealed for donations through the crowd funding platform, Crowd Justice. They raised £50,000 in just eight days. The campaign page “Tenant Tax” has been re-opened as they attempt to raise the next slice of funds needed to progress the campaign.
Bolton believes that if these tax changes go ahead, landlords most severely affected will either sell up or hike rents to remain profitable. He says “The days where nobody loves a landlord must come to an end. 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 9th June at the ILEC Conference Centre in Earls Court.