What do property investors do on boxing day?
- AuthorMolly Frankham
For most of us, a fairly typical Boxing Day routine is to watch old films, eat leftovers, avoid family members and formulate ideas for Judicial Review. It’s just that classic Christmas routine. This year in fact, a couple of Property Investors have come up with a challenge which is quickly gathering momentum - £42,000.00 of momentum.
The challenge involves Clause 24 of the 2015 Finance Bill, the controversial change which prevents landlords from offsetting mortgage interest costs against rental profits before calculating tax. This has a detrimental effect on landlords who may be required to pay tax on little or no profit.
Financial support has been gathered via a crowdfunding page Crowd Justice, over 600 people have contributed meaning they are well on their way to their £50,000.00 target. The claim needs to be submitted by 17 February 2016, and is on the basis of clause 24 being contrary to “a long established principle of taxation that expenses incurred wholly and exclusively for the purposes of business are deductible when calculating taxable profits.”
Also, word is that Omnia Strategy has been appointed to represent the investors (that’s Cherie Blair QC’s firm!). We shall wait and see what happens!