HM Revenue & Customs and the Treasury have at last responded to the legal team representing two landlords challenging beleaguered Chancellor George Osborne’s bid to cut buy to let mortgage interest tax relief - but the comments cannot be made public.
LAT readers will have seen in recent weeks the various reports on how landlords Steve Bolton and Chris Cooper are arguing for a judicial 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.
This follows Osborne’s announcement on the interest tax relief change, initially made back in July. Bolton and Cooper describe the announcement as ending “a long-established principle of taxation that expenses incurred wholly and exclusively for the purposes of the business are deductible when calculating the taxable profits”.