The removal of mortgage interest relief from tax deductibles for the UK’s buy to let landlords is set to begin its remorseless impact on landlord’s cash flow from April 2017.
For Steve Bolton and Chris Cooper, this tax change was step too far. They approached Cherie Blair QC, to argue for a judicial review of the legislation in the High Court.
The judge was not impressed and refused permission for leave to proceed.
The Rental Landlords Association vice-chairperson, Douglas Haig, was at the hearing. He said:
“Whilst it is now being judged as a legal tax that doesn’t make it a just or fair tax and the Government still doesn’t seem to fully understand the impact it will have on housing supply and economic activity.
“While landlords will be affected the real losers with be the tenants as living costs continue to increase.”
Bolton and Cooper issued a joint statement following the hearing:
“It has completely missed the opportunity to protect tenants, landlords and the housing market from the disastrous consequences of Section 24.
“Sadly it will be tenants who are hit hardest; they are set to see unprecedented rent increases over the coming months and years, which will be a very clear and direct consequence of this ludicrous legislation.
“For many, it will also mean the loss of their homes because vast numbers of landlords will be forced to exit the market.
“Hard-working, responsible landlords will have their pension plans in ruins, but the large corporations and the wealthiest in society, who can buy property without the need for mortgage finance, are systematically excluded from this unfair tax policy.”