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TODAY'S OTHER NEWS

Phase two of Tenant Tax campaign launches

A group campaigning for the abolition of the buy-to-let tax grab have launched the second phase of its crowdfunding campaign and announced a major event in London to support the cause. 

The ‘Judicial Review of Section 24 – Tenant Tax’ campaign aims to raise an additional £250,000 to fight the Government in court. Its initial crowdfunding campaign saw £50,000 raised in just eight days to launch a legal case against the Government’s buy-to-let tax relief changes.

The group will hold the ‘Tenant Tax Summit – Landlords Fight Back’ on 9 June at the ILEC Conference Centre in Earls Court. Confirmed speakers include Lord Howard Flight, and representatives from Platinum Property Partners, SpareRoom, Shawbrook Bank, Property 118 and Property Tribes.
 
Steve Bolton, founder and chairman of Platinum Property Partners, and fellow landlord Chris Cooper are calling on all landlords, tenants, letting agents and others who will be adversely affected by this new legislation to support their cause.
 
The ‘Tenant Tax’ campaign is now reopen for pledges via the Crowd Justice platform (www.crowdjustice.co.uk/case/tenanttax/) and aims to raise an additional £250,000 to fight Section 24 of the Finance (No. 2) Act 2015, which plans to turn a ‘normal  business expense’ (finance costs) into a taxable revenue. 
 
The ‘Tenant Tax Summit – Landlords Fight Back’ will highlight the plight of both landlords and tenants, with a common objective in mind – the abolishment of “ludicrous” legislation that will force the worst affected landlords to either sell their properties; thereby reducing the supply of rental properties and forcing tenants to find new homes; or increase their rents far more aggressively, making renting even more unaffordable.
 
Tickets for the event are being offered through the Tenant Tax crowdfunding platform only and anyone who makes a minimum pledge of £100 will be given a complimentary ticket. This is to ensure that 100% of ticket sales can be channelled towards the legal challenge. Event costs will be covered by corporate sponsors, partners and patrons.

A full application for a Judicial Review against Section 24 of the Finance (No. 2) Act 2015 was submitted in February and a joint Acknowledgement of Service was received from HMRC and the Treasury on behalf of the Government.
 
Steve Bolton said: “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’.

“The Tenant Tax is wrong on every level and if we allow a normal business expense to become a taxable expense for landlords, who will be next; Corporate landlords?  Shopkeepers?  Small business owners? Anyone who has used finance to help expand their business?
 
“We aim to make the Tenant Tax Summit a very enjoyable, inspiring, interactive, uplifting, informative, educational and motivational day. It is a unique chance for our grassroots supporters to come together, support each other, share ideas and shout from the rooftops. We want to show politicians, the media and the country at large that we truly are a force to be reckoned with.

“This is a not-for-profit, volunteer-driven campaign and we encourage all landlords, tenants, lettings agents and other industry organisations and businesses to find out more and support our cause by visiting www.crowdjustice.co.uk/case/tenanttax/.”

  • Peter Lassman

    Let's hope this gets cause gets the Media Coverage and funds it needs as this will effect all Landlords. It i is an Outrageouse Tax from an over stretched, over spent , over money Wasting Government who are clearly out of Touch with the BTL Rental market

  • Paul Knox

    Whilst I support the notion that it changes a fundamental rule on expenses.
    It's only individuals on on the higher tax bandings that are affected. Not your average person with a second property.

    If the BTL's are set up in a seethrough corporate structure, then there is no pending tax change.

    IMO. It's wrong that us landlords can claim a tax deduction off owning a BTL when others struggle to pay rent.

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    Youre not a landlord, are you Paul? I presume youre filling out your tax return devoid of all the legitimate expenses because youve always happily volunteered to pay more tax than the law demands? Or that you didnt buy on a mortgage because even before this blew up youd had a premonition about how evil it would be for a housing business to carry borrowings, and wanted no part of it?

    Of course you did. You only declare gross rents? Voluntarily offer rents at huge reductions to market, or house people for free if they say they cant afford it?

    Too many holes in that comment for you to be real. Get back to your friends on HPC.

     
  • Chris Cooper

    Hi Paul. The measures will cause many thousands of low rate tax payers to be moved into the higher rate bracket, and some will be moved from lower rate all the way into additional rate, where they will start to lose their personal tax allowance. If new BTLs are set up in a corporate structure moving forwards then the new measures will not affect them. However, most landlords will have set up their BTLs as individual, unincorporated landlords and so the measures will affect them however long the mortgage has existed and therefore the effect is retroactive. Transferring existing properties into a corporate structure will, in most cases, attract CGT and SDLT.

    Brit Sixteen Sixty Four

    Chris its just a partial removal of tax relief from landlords to give a more equal playing field with first time buyers. To many landlords are taking on huge debts with this interest only mortgages to avoid tax often with no repayment vehicle breaching their mortgage conditions. Action was badly needed for a healthy economy.

    Personally thinking instead of c24 and stamp duty hike we should of just banned interest only and returned to repayment mortgages for a more healthy market.

     
  • Chris Cooper

    BSSF some facts for you: S24 is not a partial removal of tax relief - it is 100% removal with a tax credit applied after the tax has been calculated. It does not "equal the playing field" - Quote from IFS (you will recall that Cameron stated the IFS is the gold standard in economic forecasting) "The reduction in generosity of tax deductions for landlords’ mortgage interest is not reducing a net tax advantage of buy-to-let but increasing its tax disadvantage relative to owner-occupation." Another from ICAEW "The Chancellor introduced the change to 'create a more level playing field' but as the measure does not apply to companies far from being level it leaves the playing field with a cliff edge in the middle." Both IFS and ICAEW are independent and not involved in the industry. Interest only mortgages do not facilitate tax avoidance, BTL mortgages have lower default rates / arrears than owner occupiers mortgages and an interest only BTL mortgage does not breach mortgage conditions. Perhaps a little more research before posting might give more credibility to your comments.

  • icon

    1664. As Ive pointed out elsewhere on this site, you are clearly howling at the moon with pretend knowledge. Let me demonstrate:

    Number of FTBs 2010: 168,000. Number of FTBs 2015: 257,000. Amount borrowed by BTL in 14/15: £15.6bn. Amount borrowed by FTB in 14/15: £47.7bn. (Source: CML/BOE).

    So how exactly are landlords squeezing out FTBs? When you say 'levelling the playing field' I presume you mean FTBs need to be held back to match the TINY volumes landlords are transacting - yes?

    Also, it is FULL removal (100%) with a (temporary?) 20% credit applied AFTER the 100% deduction has been calculated, so next to useless really.

    And exactly where, how and why would anyone but an uninformed lunatic think that interest only mortgages had terms in them demanding specific repayment vehicles?! You seem to have utterly misunderstood IO mortgages as you also claim theyre used to AVOID tax??? Eh??

    You obviously dont know very much about this so please dont embarress yourself like this in future. Or do. Its very entertaining.

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