Steve Bolton, the Founder and Chairman of Platinum Property Partners (PPP) is co-leading a legal challenge against the Conservative Government via a process known as a “Judicial Review”.
As a result of the Summer 2015 Budget, there were important tax changes that will overturn a fundamental financial business principle, where income less costs equals profit.
In simple terms, the Government believes that it makes 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.
Philip Booth, a Professor of Finance, Public Policy and Ethics at St. Mary’s University previously stated: “To put it quite bluntly, this is an elementary undergraduate public finance error that should not be made in the Treasury.”
In a bizarre twist, the Government has decided to exclude the most wealthy property landlords, who are able to make cash-only purchases, as well as institutions and corporations and overseas landlords, all of whom are excluded and unaffected by this unfair tax grab.
Steve Bolton, who is spear-heading the legal fight on behalf of his 200 strong network of PPP landlords and thousands of other investors, commented: “It’s not clear why the Government has chosen to just launch an attack on buy-to-let owner-operators with mortgages. It’s a tax from Alice in Wonderland – truly absurd and divorced from real life. Not only is this tax grab unfair, undemocratic and underhanded, but we believe that it could also be unlawful.”
The lawyers supporting Steve Bolton and other interested parties believe that there may be a basis in Human Rights and European law where this can be challenged and over-turned via the courts.
Steve and a fellow hard-working professional landlord, Chris Cooper, have launched a fund-raising campaign to raise the necessary funds to mount a legal challenge. Time is running out and support is needed now. All pledges and support are welcomed.
The campaign officially goes live at 1am on 26th December 2015.
Further details and financial pledges can be made here:
