The two buy to let investors behind a campaign to seek a judicial review of George Osborne’s controversial mortgage interest tax relief change say they have been told there is a “reasonable chance of success.”
Steve Bolton and Chris Cooper have sought the advice of a legal team including Cherie Blair QC on the chance of securing a review of section 24 of the Finance (No. 2) Act 2015 - which includes the proposed restriction of mortgage interest tax relief at a basic rate, even for higher rate-paying landlords.
“The next step is for our lawyers, Omnia Strategy LLP, to send a letter outlining our case to the government with a view to commencing judicial review proceedings” says the landlords on their Facebook campaign page.
Bolton, whose Platinum Property Partners business has £200m of residential property in its portfolio, is working with fellow landlord Cooper to mount a legal challenge on behalf of around 250 investors in the PPP network.
The pair launched their campaign just before Christmas, quickly securing £50,000 through crowdfunding to get the initial legal advice and launch the challenge.
The pair say on their Facebook page: “The Finance Act 2015 includes Clause 24, which overturns a fundamental financial business principle, where INCOME less COSTS equals PROFIT. The current government sees fit to change this tried, tested and proven commercial formula. In simple terms, the government believe that it makes complete sense to tax property owners on that part of the rent that has been paid to the lender as mortgage interest, as if that money was still in the property owners’ bank account!”