Landlords who are objecting to the interest restriction on buy-to-let property, to be phased in from 2017, are looking at challenging this change. It might push some of them out of business.
All this may mean that the change actually achieves what it was intended to do, which is discourage buy-to-let in order to make it easier for first-time buyers to get into the property market.
UK landlords claim restriction on loan relief is 'state aid' for corporates Landlords challenging the new restrictions on loan relief for buy-to-let properties have published the grounds for their judicial review application. The restrictions were announced without prior warning in last July's special post-election summer Budget, and rapidly embodied in clause 24 of the Finance Act 2015. Starting in April 2017, higher-rate tax relief on individual landlords' finance costs (typically mortgage interest) will be gradually withdrawn – by 5 April 2020 relief will only be available at the 20 per cent basic rate of income tax.