Cherie Blair’s landlord tax challenge gets October court date

court-gavelCherie Blair will lead a team of lawyers and landlords to court this October as they continue a challenge to tax changes that will hit landlords next year.

The new rules, which will be phased in from April 2017, stop landlords from being able to deduct their mortgage interest costs from their rental income before calculating their tax bill – effectively leaving buy-to-let investors paying tax on turnover, instead of profit. Even with a 20 per cent tax allowance, landlords will be hit hard by the change, pushing some into higher tax brackets, leaving others making no profit and giving many no choice but to raise rents.

A campaign to overturn the law via a judicial review began last year, founded by landlords Chris Cooper and Steve Bolton. Now, the Axe the Tenant Tax campaign represents more than 150,000 landlords, who, in turn, provide housing for more than 1 million tenants.

Their challenge, which is led by a legal team from Cherie Blair’s firm Omnia Strategy LLP, now has a court date of 6th October. The permission hearing will see the group set out their argument for the judicial review, before a judge rules whether it can proceed.

The hearing will start no later than 11.30am and take around 90 minutes, longer than the norm for a judicial review hearing, which the campaign organisers say is a “positive development”. Indeed, the group recently met Housing Minister Gavin Barwell for a “productive” meeting in which they outlined their concerns about the new law’s potential impact upon tenants, as well as the property market.

So far, the Axe the Tenant Tax campaign has raised more than £100,000 to fund its challenge.

Watch this space for details of any developments and fingers crossed for a positive outcome!

 

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