Wife of former Labour Prime Minister Cherie Blair has recently used the Human Rights Legislation in her legal battle against the government's policy to increase taxes on buy-to-let investments. She is set to challenge the government with this case.
Just recently, a campaign started for a judicial review of the government's policy change that will allow buy-to-let tax be relieved gradually reduced to basic rate tax by 2017. According to Mortgage Strategy, their new policy will prevent landlords who have mortgage from offsetting mortgage interest cost against the profit from rental calculating tax. The legal team has come to an argument that the government's move violates the European Convention of Human Rights. It also reportedly produces a very unlawful grant of state aid to corporate landlords.
As recalled, the pair who started the campaign, Steve Bolton and Chris Cooper, came up with their plan back in December while they call out on financial backers via Twitter. Simply Business reported that they quickly reached the £50,000 target from 741 supporters. They then submitted their case to Omnia Strategy, one that was held by Blair. One of the issues which their arguments target on is one where owner-occupiers do not pay Capital Gains Tax (CGT) when they sell their property, whereas the owners of rental accommodation pay from 18% to 28% of the CGT.
In a letter sent to HMRC, also seen by The Daily Telegraph, Cherie Blair's law firm sets out the legal grounds wherein it hopes to crush the controversial tax in court. The tax is centered on the government's aim to grow homeownership and help the young property. However, this case is reportedly going to be a huge embarrassment on George Osborne, repeatedly saying that he wants to level the playing field of homeowners and the rapidly growing army of buy-to-let investors, as reported by Telegraph.
The legal team led by Cherie Blair has already shot their first bullet resting upon the case. They believe they have a reasonable chance of success.
