Mortgage interest relief battle at High Court

Sally Walmsley
Written by Sally Walmsley

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.

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

1 Comment

  • I have been a landlord now for nearly 10 years since I moved in with my partner (now husband). In that time I have made not one penny of profit, as everything is ploughed into agent fees, maintenance and mortgage payments. Right now it still costs me £45 a month on top of rental income to cover expenses. If the government plans on taxing turnover go ahead I will have an even larger deficit and will almost certainly have no choice but to sell and invest my capital elsewhere. This isn’t a business, I’m not raking in cash at a tenants expense, I’m merely investing for my retirement – which is what the government urges us all to do. This new legislation will hurt everyone, not least those who can’t afford their own home, and I still don’t understand the reasoning behind it, can they really justify it?

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