Landlords to challenge George Osborne's tax relief changes
03 January 2016
A group representing over 200 landlords is launching a court challenge against Buy to Let tax changes due to come into force in 2017. Having obtained legal advice they believe that the changes breach human rights legislation & European Law.
Tax relief will gradually start to be cut from 2017 onwards to a flat rate of 20% instead of the 40% - 45% currently being enjoyed by many landlords.
This has angered Landlords especially as they have also been hit by the addition of an extra 3% stamp duty on future Buy To Let purchases due to start April 2016.
There seem to be two sides to the argument with many feeling that Landlords are being victimised and others feeling that Landlords have been benefiting from tax relief on their mortgages for long enough, whereas normal householders receive no tax relief.
We expect the formal legal action to take place this year, so we will watch this with interest!