Landlord Legal Fight against Government Tax Increase Fails

Landlords have lost their legal bid to force a judicial review of the government’s plans to cut tax relief for landlords.

The new changes come into effect next year when tax relief on mortgage interest is gradually reduced to a flat rate of 20%. This, as well as an extra 3% stamp duty in buy to let property purchases, has been described as “unfair, undemocratic and underhanded” by landlords.

Cherie Blair’s Legal Challenge
A campaign group, championed by Cherie Blair, decided to launch a legal challenge, but Timothy Brennan QC said the claim was “unarguable” and that the case was not in the public interest. Mr Justice Dingemans refused to allow a judicial review to go ahead on the basis that “It would be a miserable spectacle to watch a case that is bound to fail.”

Axe the Tenant Tax Group
Steve Bolton and Chris Cooper, founding members of the Axe the Tenant Tax group, were not happy with the court’s decision.

“It has completely missed the opportunity to protect tenants, landlords and the housing market from the disastrous consequences of Section 24,” they said after the verdict.

NLA Verdict
Richard Lambert, CEO of the National Landlords Association, added:

“This decision is ultimately disappointing not just for landlords, but for the tenants who will see their rents rise as a consequence of the changes to landlord taxation.”

Although he conceded that: “While we have never been convinced that there was a solid enough legal case to overturn George Osborne’s decision, we hoped the courts would be prepared at least to listen to the arguments.”

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