You may recall from previous tax chats that with effect from 6 April 2017 tax relief for interest paid by individuals on buy to let mortgages will be restricted.
Income tax relief for interest payments & finance costs will be restricted to the basic rate of income tax. The restriction will be phased in over four years.
Two private landlords backed by pressure group ‘Axe the Tenant Tax’ attempted to challenge these changes via the High Court and to force a judicial review.
They stated that the restrictions on tax relief would cause tenants to see unprecedented rent increases and also that the legislation, which applies to individual landlords only, could be unlawful as it results in the grant of state aid to corporate landlords.
Unfortunately the Judge declared their complaints unarguable and refused to open the way for a full hearing.
This decision is the end of the legal route but we understand that the pressure group will continue to campaign for amendments to this tax change. We will keep you posted.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.