Landlords challenging the Government’s plans to stop buy-to-let costs being a claimable business expense will have their case heard at the High Court tomorrow.
Co-claimants Steve Bolton and Chris Cooper, represented by ex-PM Tony Blair’s wife Cherie Booth, are fighting the changes to Mortgage Interest Relief due to come in next year, asking for a judicial review into the changes proposed under section 24 of the Finance (No.2) Act 2015.
The changes will stop mortgage interest payments being a claimable business expense, meaning that landlords with mortgages will have to pay tax on their turnover rather than profit.
An RLA survey of landlords showed the changes would lead to higher rents for tenants, see repair and maintenance standards slip and stem supply of PRS housing at just the time when demand is soaring.
The association is supporting the case and has drummed up a surge of support from Tory backbenchers, with hundreds of members writing to their MPs opposing the plans.