DUBLIN: The Irish government has promised to restore tax relief for landlords, fuelling hope among campaigners that the UK chancellor might also reverse punitive tax changes for buy-to-let investors that are due to come into force next year.
Earlier this month the Axe The Tenant Tax campaign group, represented by QC Cherie Blair, lost its bid for a judicial review of the UK Government’s decision to cut back tax relief on mortgage interest for private landlords. The relief is due to be gradually scaled back to 20 per cent between 2017 and 2020.
The campaign group argued that the tax changes were unlawful on the basis that the restriction on landlords’ ability to deduct finance costs as a business expense might constitute a grant of state aid to corporate landlords and owners of commercially let holiday homes, and might breach the European Convention on Human Rights. It also claimed landlords would be forced to pass on increased costs to tenants, pushing up rents, and some might lose their home if landlords could no longer afford to maintain their buy-to-let properties. The campaigners vowed to contiinue their fight despite the court’s decision.
