LETTING & ESTATE AGENT

Key legal verdict on buy to let tax change to be delivered this week

Key legal verdict on buy to let tax change to be delivered this week

The case made by two landlords to have a judicial review of section 24 of the 2015 Finance Act - triggering the phased reduction of mortgage interest tax relief for some landlords - will be made on Thursday in the Royal Courts of Justice in London. 

Landlords Steve Bolton and Chris Cooper are arguing for a review and their case will be led by the head of their legal team, Cherie Blair QC.

The Finance Act limits buy to let tax relief to the basic rate of income tax - currently 20 per cent - even if the individual property owner pays a higher rate of tax. This will be phased in over four years from April 2017.

The legal argument against the legislation hinges on it allegedly discriminating against individual landlords by denying them the same rights as, for example, large scale corporate and institutional landlords which can set their finance costs off against their income and be taxed only on their profit.

The hearing on Thursday morning will also involve HMRC stating why it believes there should not be a review and a decision is expected later that same day.

Supporters of the landlords include the National Landlords' Association and Belvoir letting agency. 


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