Two landlords, Steve Bolton and Chris Cooper, are set to challenge the Government in court on behalf of 700 plus campaign supporters and 250 Platinum property Partners. The action is to challenge the Government on the proposed new tax laws aimed at buy-to-let tax relief interest paid by landlords. The two leaders of the action have said the legal opinion from the law firm Omnia Strategy, led by Cherie Blair QC, has confirmed that the action has a “Reasonable chance of success”. Following a successful fundraising stage, where the target £50,000 was raised via the Crowd Justice website the legal team has now issued a Pre-Action Protocol letter to HMRC. This letter, which has now been issued on behalf of the co-claimants Bolton & Cooper, calls for a Judicial Review of the Governments policy change. The change was announced in the Summer Budget 2015 which restricts buy-to-let mortgage interest tax relief from April 2017. The Government now has to respond to this letter issued by Wednesday 10th February 2016. The new policy (Section 24 of the finance act 2015) will prevent landlords with mortgages from offsetting mortgage interest paid against any potential rental income profits. The legal challenge is being made against the new policy on the basis that it breaches the European Convention on Human Rights. It constitutes unlawful grant of State aid to corporate landlords and to the owners of commercially let holiday homes contrary to articles of the treaty on the Functioning of the European Union. Way forward: Landlords around the country are watching this with great interest as the outcome will set new trends for the future. Currently landlords are in good spirit as they see the future being bright due to increasing property values and rents keeping pace with costs.
