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TODAY'S OTHER NEWS

Landlords urged to oppose mortgage tax relief

Small-scale landlords with mortgages on their buy-to-let properties are being urged to fight back against unjust mortgage tax relief changes by joining a campaign against the cuts. 

The existing rules that permit landlords to offset all of their mortgage interest against tax will, from next year, be phased out, and by April 2020, once they have been withdrawn altogether, it is likely that higher-rate tax payers will only receive 50% of the relief they that currently get. 

The curb on the amount of tax that landlords can claim back on their property investments, which were announced by Chancellor George Osborne in the July Budget, could mean buying and renting out property is no longer viable for many.

Attempts to reclassify mortgage interest as anything other than a normal business expense could have a disastrous impact on the buy-to-let sector, with higher expenses passed on to tenants.

According to Treasury forecasts, the tax relief changes will net it close to £1bn a year by 2021.

Campaigners are trying to raise a £300,000 war chest in a bid to launch a judicial review against the restrictions.

Anyone pledging more than £100 will be entitled to claim at least one complimentary ticket to a campaign rally being held in London on Thursday 9th June.

Cherie Blair MBE QC has thrown her weight behind the campaign. Her law firm Omnia Strategy sent a legal letter to the HMRC in February stating the changes breach landlords’ human rights. She believes the campaign has a reasonable chance of success.

Landlords urged to oppose mortgage tax relief

The legal challenge is also being backed by landlords Steve Bolton and Chris Cooper.

Cooper is a part-time landlord who is using buy-to-let as part of his pension, while Bolton owns around 20 residential and commercial properties. He is also the founder and owner of Platinum Property Partners, a buy-to-let specialist with a portfolio worth a total of £200m.

Landlords urged to oppose mortgage tax relief

In a statement to landlords the pair said: “With your continued financial backing and support, we plan to take the Government all the way to court and fight the strongest case that we can.

“Please spread the word far and wide amongst your community, especially fellow landlords, tenants, letting agents and others who will be adversely affected by this ludicrous legislation.”

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    I have the utmost respect for Steve and Chris for mounting this defence when the landlord organisations wouldn't commit to it. The time (and money) they've personally put into it is extraordinary. I am really looking forward to the summit. Good luck guys.

  • Peter Lassman

    And the £1 Billion raised wil no Dought be used to pay for MOs to sleep in the
    "House Of Twats" Pay for donations abroad, Benefit Scroungers, Migrants coming to live here and a Goid few Party Supporters to oversee it all, AS USUAL MONEY WASTED

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    For god's sake will you please learn to spell as you are obviously another complete dimwit with little education or brain power. Try re-posting saying what you mean in the Queens English or sod off back home which is probably another country.

     
    Peter Lassman

    Do you mean me Paul Robinson if you do your a Twat who who can't see outside the Box around a few bad spellings, or Predictive Texts problems, a few bad spellings does not mean i'm a Dim wit , I was born in England in Hackney and very proud of it, but not with a silver spoon in my mouth and i'm actually a very successful Retired Landlord at 55 years old, are you Retired, also i'm not a Racist like you who assumes a few bad spellings lead to me being a foreigner, Lets hope we don't meet to discuss further !!

     
    Peter Lassman

    Do you mean me Paul Robinson if you do your a Twat who who can't see outside the Box around a few bad spellings, or Predictive Texts problems, a few bad spellings does not mean i'm a Dim wit , I was born in England in Hackney and very proud of it, but not with a silver spoon in my mouth and i'm actually a very successful Retired Landlord at 55 years old, are you Retired, also i'm not a Racist like you who assumes a few bad spellings lead to me being a foreigner, Lets hope we don't meet to discuss further !!

    I forgot to Add Paul Robinson did you have anything sensible to say about the reason we are on here, especially as most of your previous Statements on other subjects are non constructive

     
  • Peter Lassman

    And well done to Steve and Chris for their attempt to stop this ludicrousness and unfair Tax, last time I tried to donate I was told it was not needed as the target had been reached this time I will be donating Peter

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    "this time I will be donating" is not really good enough.

    The link for donations has already been live for a couple of weeks. You can make your donation right now. Do it.

  • Paul Knox

    I assume this is a sponsored article as its not journalistically fair or accurate.

    Interest tax relief is being capped at basic rate. If you pay basic rate tax, you're no worse off. However if you're a landlord with a low income you'll now get the same tax benefit as the larger private landlord, meaning the small time landlord (like someone using their pension pot) might actually be less disadvantaged.

    IMO, anyone that uses Human Rights law to make more profit has completely lost what the purpose of the law is for.

    G romit

    Approximately 150,000 landlords who are basic rate taxpayers will be taxed as High Rate Payers, and as a result will pay more tax (verified by an FoI request). Also some Landlords will suffer knock effects of loss of Child Benefit, child maintenance apyments, possibly even the loss of their Personal Allowance if their "deemed" taxable income by HMRC exceeds the respective tax thresholds.

     
    G romit

    Human Rights legislation is being used to counter the unfair/discriminatory way in which this tax is being applied to just a narrow segment of Landlords, with incorporated Landlords and unencumbered Landlords being unaffected by this tax change and therefore are being given a commercial advantage.
    It also changes the way which all other businesses are taxed i.e being taxed on actual profit after all legitimate businesses expenses have been deducted from their revenue.

     
  • Paul Knox

    Barry;

    For starters there's no law to stop large landlords incorporating.

    Secondly, why should a landlord with a large portfolio have a tax advantage over a person with a small portfolio. Same line of work, therefore the tax should be equal amongst all players in that market.

    Thirdly; if you renovate a property you pay a different rate of VAT than if you build from new. Same business treated different under tax laws. Is that a breach of the HRA? Investing in northern properties is cheaper than south east properties, leading to higher mortgages, thus different tax thresholds.

    IMO, you can't use the HRA about less profit when people can't afford a stable home for themselves.

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