Cherie Blair, MBE QC, the wife of former Labour Prime Minister Tony Blair is representing a group of several hundred property investors. They are lobbying against a tax increase which was announced by George Osborne in the summer.
She argued that the human rights of buy-to-let landlords will be breached by a tax charge, in a legal challenge to the Government.
A Judicial Review of the controversial policy change has been called for by Mrs Blair’s law firm Omnia Strategy LLP. The policy change would restrict buy-to-let mortgage interest tax relief from April 2017.
The case has been brought by two private landlords, Steve Bolton and Chris Cooper, who used crowdfunding to raise over £50,000 from 737 individuals including other landlords and letting agents that also think the policy is unlawful.
You can download the pre-action letter that was sent to HMRC by their lawyers here. It outlines the case and they have to reply…
Please note there is a short data capture form on the site. It states that ‘Your details will not be used or shared for any other purpose than sending you this letter and keeping you up to date from time to time with the Judicial Review process’.
The landlords – Steve Bolton and Chris Cooper – say on Facebook:
“The Finance Act 2015 includes Clause 24, which overturns a fundamental financial business principle, where INCOME less COSTS equals PROFIT.
The current government sees fit to change this tried, tested and proven commercial formula. In simple terms, the government believe that it makes complete sense to tax property owners on that part of the rent that has been paid to the lender as mortgage interest, as if that money was still in the property owners’ bank account!”
You can also read DAN HYDE’s article from Thisismoney – Tax bosses have totally lost the plot – cosying up to the corporate giants but threatening ordinary people