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Tenant tax judicial review bid
fails but campaign rolls on
Landlords leading the campaign
against Section 24 of the Finance
(No. 2) Act 2015, also known as ‘the
Tenant Tax’, have vowed to continue
to take their case to the Government,
following
the
Administrative
Court’s decision today to not grant
permission to proceed to a full judicial
review hearing of the legislation.
Cherie Blair CBE, QC of Omnia Strategy
LLP, who represented co-claimants
Steve Bolton, Chairman of Platinum
Property Partners, and fellow landlord
Chris Cooper, on behalf of the “Axe the
Tenant Tax” coalition against HMRC
voiced the disappointment that will be
felt across the country:
“The Court’s decision that our clients’
legal challenge should not proceed is
very disappointing. Steve and Chris,
and many others, have dedicated a
lot of time and energy into putting
forward the best case possible. We
know the case has been supported
and followed with interest by a large
number of individual landlords.
Many of these landlords now face
challenging times ahead.
“From the outset, the legal process
was just one aspect of our clients’ fight
against this unfair measure. Together
with their impressive and growing
coalition, they will continue to engage
with the Government, and the legal
team wishes them every success.”
In a joint statement, Mr Bolton and Mr
Cooper commented: “We are outraged
by the Court’s decision today. It has
completely missed the opportunity
to protect tenants, landlords and the
housing market from the disastrous
consequences of Section 24.
“From April 2017 the negative impact
of this previously failed tax experiment
from Ireland, where rents increased by
50% over a three year period, will be
felt far and wide. 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.
22 Landlord & Buy-to-Let Issue 69 • November 2016
“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.
“Now that the legal route has run its
course, we will be focussing 100% of our
attention and resources on taking our case
more forcefully, more powerfully and more
directly, right to the heart of Government.
Our goal is simple: to abolish this tax or to
remove the retrospective nature of it.
“We will be launching a range of
lobbying, media and grassroots activism
measures over the coming days and
weeks. We will also be encouraging all
of our landlords to write to their tenants
if they have to increase their rents or
sell up, clearly explaining that it is this
Conservative tax policy that has forced
them into this situation.“
‘Axe the Tenant Tax’ is a crowdfunded coalition of individuals and
organisations who represent more than
150,000 landlords, who in turn provide
privately rented accommodation to
more than one million tenants.
The legal team at Omnia Strategy
LLP argued that Section 24 is unlawful
on the basis that the restriction on
landlords’ ability to deduct finance costs
as a business expense may constitute an
unlawful grant of State Aid to corporate
landlords and owners of commercially let
holiday homes and may also breach the
European Convention on Human Rights.
The Axe the Tenant Tax coalition has
now launched its third crowd-funding
campaign to raise money for an integrated
media, PR and lobbying campaign. Their
aim is to attempt to abolish the planned
legislation by putting significant political
pressure on MPs and Government.
Axe the Tenant Tax has already broken
two legal crowd-funding records with in
excess of £180,000 being raised in record
time. Bolton and Cooper are now raising
additional funds to continue with their
fight. For further details and to make a
donation, visit: www.tenanttax.co.uk