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Landlords step up legal challenge over buy-to-let tax

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Buy-to-let investors are looking to raise a further £250,000 in their bid to fight the cuts to mortgage interest relief set to be phased in from next year.

The Telegraph reports campaigners plan a summit in central London to add to the £50,000 already raised as part of plans to launch a judicial review against the incoming restrictions to mortgage interest relief.

In the July Budget Chancellor George Osborne announced the higher rate of relief would be gradually withdrawn over four years from April 2017.

The judicial review challenging the move is being led by Cherie Blair, and has been brought by landlords Steve Bolton and Chris Cooper.

Platinum Property Partners chairman Steve Bolton told the newspaper: “The days where ‘nobody loves a landlord’ must come to an end. We need to unite to show that we will not accept the victimisation of landlords and tenants by the out of touch political elite.

“They are deluded if they believe that they will go unchallenged when trying to reclassify ‘mortgage interest’ as anything other than a ‘normal business expense’.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. It is just another tax smash and grab by Osborne, dressed up as help for First Time Buyers. Rents will go up as supply reduces to the rental sector and the housing stock deficit will continue as before. Landlords are not the problem, lack of housebuilding is the problem. Hopefully sanity will ultimately prevail and this will be another Osborne U-turn.

  2. While it could be seen as a smash and grab raid Tax is also used as a blunt Instrument to change behaviour. If you look at the BLT investment in the UK many feel it is one way street to riches or a retirement fund
    London has to be a concern Over the last few years capital values have risen considerably to the extent that you are BTL investor in some areas you are might be lucky to just get a yield of 2% W

    Unfortunately what is happening is over the years most of the investors in BTL are basing their investment decision on their capital value they are sitting on in their home. Many are using that equity to purchase additional property.

    Governments and regulators have been giving warns for the last few years yet no one is showing slightest bit of notice notice. Interest rates are low and may remain low for couple years yet The last resort the government can use to bring normality within this sector is the increase and decrease in taxes and tax breaks as a way of curbing enthusiasm for this asset class

  3. Nothing would solve all these issues more than simply building significantly more property. Not luxury apartments which are used simply as cash deposit boxes for the super rich, but actually creating more homes. The supply/demand seesaw has been tipping the wrong way for far too long, which is why London prices are off the scale. This explains the it better: http://www.keystoneifa.co.uk/landlords-will-cherie-blair-be-their-guardian-angel/

  4. Are these people completely deluded!
    What an utter waste of money !

  5. There’s a lot at stake Richard….

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