The landlords mounting a legal challenge to the Government’s proposals to increase taxation on buy-to-let investments have to date raised over £43000 in under a week. Two private landlords are leading this challenge and have been looking for financial help towards the action. They set up a crowdfunding page via website Crowd Justice on Boxing Day and have already nearly met their £50000 target. To date over 600 people have contributed cash to help fund the legal challenge later this year. They are hoping a judicial review will overturn the controversial “Clause 24” of the 2015 Finance Bill. The Government want to introduce plans to prevent landlords offsetting mortgage interest paid against rental profits. The tax changes will apply to existing and future investment properties. These changes if applied will mean some landlords will pay tax even if the investment is not generating a profit. The Judicial review – a legal process in which a court reviews legislation or administration decisions needs to be submitted by February 17th of this year. Buy-to-let investors have found little support from any political party however their objections to the tax changes are very widely supported by the legal and accounting professions. Research last week highlighted that more than 50% of current landlords plan hefty rent increases should this action not be successful. On reflection the government may need to re-think the proposed tax changes as tenants will end up footing the bill for this action: Mortgage help? If you require assistance with your new or re-mortgage please call one of our fully qualified advisers who will be happy to help.
