Cherie Blair’s law firm, Omnia Strategy, has launched a legal challenge to a government policy that will increase taxes on buy-to-let investments, in a potentially embarrassing development for chancellor George Osborne.
Osborne announced the tax change – which will stop smaller landlords from deducting mortgage interest payments from rental income before declaring a taxable profit – in last summer’s budget. Omnia Strategy argues that the move discriminates against those smaller investors – corporate landlords, in contrast, will continue to be able to offset interest costs. The firm also says that the move distorts competition and is a form of aid that requires the prior approval of the European Commission.
Steve Bolton and Chris Cooper, two private landlords, are responsible for bringing the case which has funding from 737 individuals, among them landlords and letting agents.
