Industry magazine Property Industry Eye has this week reported that two Landlords are raising funds to challenge Clause 24 of the Finance Act 2015 announced in last Julys budget. They are hoping to raise sufficient funds to seek a judicial review claiming that Clause 24 breaches human rights and / or EU law.
Clause 24 is the ruling which reduces the amount of mortgage interest Landlords can claim against tax basically meaning that Landlords will be taxed on turnover, not profit. This potentially may push some Landlords into higher tax brackets and could lead to them paying tax, even if they are making losses.
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