Two weeks today, landlords, letting agents and others from the UK’s private rented sector will come together in London for a special summit tackling the government’s “Tenant Tax”, which is set to negatively impact both landlords and tenants.
The tax change, which was introduced in last year’s summer Budget, is the latest in a string of blows against the buy-to-let sector from the UK government. It will cut the amount that landlords can claim as tax relief on their mortgage interest. This will force them to pay tax on the rent they receive, rather than on what is left after they have paid their mortgage interest – a move that will make them different to other businesses in the UK, which are allowed to offset total costs against income before being taxed (on its profit).
A result, landlords hit hardest by the tax change will be forced to sell their property or raise rents – both of which would be bad news for tenants, either by reducing the supply of rental properties or by making renting even less affordable.
A group of landlords, though, are fighting back with a campaign to axe what they have dubbed the “Tenant Tax”. The group have appointed a world-class legal team at Omnia Strategy, led by Cherie Blair CBE QC, to seek a judicial review of the bill.
The campaign is currently waiting to hear back from the court for permission to go to a full hearing, while would likely be held in the autumn, with the court then responsible for deciding whether the Government’s Tenant Tax is unlawful.
To raise awareness, the campaign team are holding a summit at the ILEC Conference Centre in Earls Court, London, on Thursday 9th June.
Tenant Tax Summit – Landlords Fight Back will highlight the plight of both landlords and tenants, with a common objective in mind: the abolition of the legislation.
The event aims to increase awareness of the campaign, provide a progress report on the legal action and outline key milestones moving forward, demonstrate the devastating impact the law will have on the housing market as a whole, present viewpoints and insights from service providers within the PRS, and raise additional funds to enable the continuation of the judicial review process.
A top-tier line-up of speakers are lined up for the event, including Lord Howard Flight, David Smith of the Residential Landlord’s Association, Matt Hutchinson from SpareRoom.co.uk and Stephen Johnson from Shawbrook Bank.
A few tickets are still remaining, with anyone who donates £100 or more to the Tenant Tax crowdfunding campaign eligible to claim at least one complimentary ticket. For more information, visit www.tenanttax.co.uk – or read our interview with campaign leader Steve Bolton.