Buy-to-let investors are set to challenge the government’s “very unfair” new plans to increase the controversial tax known as “Clause 24”. Under the new measures, new buy-to-let investors will be liable to tax even if their newly acquired property generates a profit or not and they ask, how can this be fair? This newly proposed tax rise known as “clause 24” is part of the 2015 finance bill which the government wishes to introduce. The change is to prevent landlords from offsetting mortgage interest costs against rental income profits before calculating any tax due. A collective group of landlords are set to mount a legal challenge to the government’s proposals. It is claimed the new plans violate “a long established principle of taxation that expenses incurred wholly and exclusively for the purpose of business are deductible when calculating any taxable profits”. To help the landlords in this action they have hired the services of Cherie Blair’s law firm as they believe they are by far the best suited for this case. Cherie and her Husband the former Prime Minister are said to own a real estate portfolio worth more than £30million, they also have buy-to-let interests in both Manchester and Bristol. It will no doubt be very interesting to see what happens when this comes to court later in 2016 with many landlords looking on with keen interest. Mortgage assistance: If you require help with a new or existing buy-to-let mortgage please do call one of our fully qualified advisers, we are here to help.
