A group of landlords have lost their High Court attempt to force a judicial review of legislation to reduce tax relief on buy-to-let interest payments from April 2017.
The group, represented by Cherie Blair of Omnia Strategy LLP, have dubbed the new measure on restricting mortgage interest relief the “tenant tax” and claim that tenants will see unprecedented rent increases as a result.
They argued that the legislation, which will apply to individual landlords but not to companies, is unlawful as it could result in a grant of state aid to corporate landlords.
This loss is the end of the legal route but the group intend to continue their campaign to put pressure on MPs and the government to amend tax policy.
Useful links
Property profits and losses
Our practical tax guide for landlords on all aspects of taxing rental income, allowable expenditure and CGT, IHT and VAT issues.
Restricting mortgage interest relief
Our guide to the forthcoming restriction on tax relief for mortgage interest.
