A buy to let landlord campaign to force the government to scrap plans to change the way high-earning landlords pay tax has launched a crowdfunding appeal for more money to fund a legal challenge.
Landlords Chris Cooper and Steve Bolton need at least £50,000 to bankroll the next stage of their judicial review in the High Court of plans to cut tax relief on mortgage and finance interest for higher rate (40%) and additional rate (45%) taxpayers.
From April 2017, the government plans to phase out top rate tax relief so all landlords can claim 20% of buy to let business interest payments.
Bolton and Cooper are demanding Chancellor George Osborne cancels the proposal and leaves landlords to claim the relief at the same rate they pay income tax.
They claim the change is unfair to landlords paying top rate tax, ignores their human rights and is against European Union state aid laws.
The landlord pair are urging landlords to put their hands in their pockets to fund the High Court action.
The pitch on crowdfunding platform CrowdJustice has collected £22,197 from 255 backers against a minimum target of £50,000.
Everyone agrees that it is a basic human need to live in a safe, warm and well maintained home,” says Cooper and Bolton’s online pitch.
“The first phase of our legal challenge is complete. We have worked closely with our lawyers to submit the best possible application for judicial review, with well-reasoned legal arguments and compelling evidence,” says the online pitch.
“We are now awaiting a ruling from the court on whether we will get our day in court to set out our case against the government in full.
“In anticipation of our application being successful, the next stage of the fundraising process has started. The sooner we reach our target; the sooner we can prepare the best possible legal case.”