Buy-to-let landlords with mortgages on small-scale portfolios are being urged to join a campaign that promises to fight back against perceived unjust tax relief changes.
From next year, existing rules that allow landlords to offset their mortgage interest against tax will be slowly phased out. By April 202, these rules will be abolished altogether.
Changes
The changes to the amount of tax landlords can claim on their properties were announced by Chancellor George Osborne in last summer’s Budget. It is feared that these alterations could mean purchasing a buy-to-let property and subsequently renting it out will be unachievable for many.
According to Treasury estimates, the tax alterations will raise almost £1bn a year by 2021.
In light of the upcoming changes, campaigners are hoping to raise a £300,000 fee in order to launch a judicial review against the restrictions. Anyone pledging £100 or more to the campaign is being offered a complimentary ticket to a rally against the changes, being held in London on Thursday 9th June.
Landlords urged to join campaign against tax changes
Backing
The campaign has already received some high-profile backing. Cherie Blair MBE QC has given her support to the opposition of the alterations, with her firm Omnia Strategy having sent a legal letter to HMRC in February. This letter said that the changes were in breach of a landlords’ human rights.
These challenges are also being backed by landlords Steve Bolton and Chris Cooper. Mr Bolton is the founder of Platinum Property Partners, specialising in buy-to-let, with a portfolio worth over £200m.
In a joint statement to landlords, the pair said, ‘with your continued financial backing and support, we plan to take the Government all the way to court and fight the strongest case that we can.’
‘Please spread the word far and wide amongst your community, especially fellow landlords, tenants, letting agents and others who will be adversely affected by this ludicrous legislation.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/5/landlords-urged-to-oppose-mortgage-tax-relief