An attempt by two buy-to-let investors to seek a judicial review of the Chancellor’s mortgage interest tax relief alterations is beginning to gather pace.
Steve Bolton and Chris Cooper have taken advice from a number of legal aids, including Cherie Blair QC, on the prospect of getting a review of section 24 of the Finance (No.2) Act 2015. They have been informed that they have a, ‘reasonable chance of success.’
Challenge
Messrs Bolton and Cooper launched their challenge shortly before Christmas and had little trouble securing £50,000 through crowdfunding to first secure legal advice and then launch the campaign.
Mr Bolton is head of Platinum Property Partners, which has £200m of residential property in its portfolio. He has teamed up with fellow buy-to-let landlord Cooper in order to launch a challenge, on behalf of nearly 250 investors in the Platinum Property Partners network.
Landlords campaigning against tax hike to contact Government
On their Facebook page, the pair state, ‘the Finance Act 2015 includes Clause 24, which overturns a fundamental financial business principle, where INCOME less COSTS equals PROFIT. The current government sees fit to change this trend, tested and proven commercial formula. In simple terms, the government believe that it makes complete sense to tax property owners on that part of the rent that has been paid to the lender as mortgage interest, as that money was still in the property owners’ bank account!’[1]
‘The next step is for our lawyers, Omnia Strategy LLP, to send a letter outlining our case to the government with a view to commencing judicial review proceedings,’ the post adds.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/1/lawyers-for-anti-osborne-buy-to-let-tax-changes-to-contact-government-this-week
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