A DEVELOPER has unveiled a massive banner on Darlington’s former Arts Centre protesting at government changes to taxation.

Andrew Whalley, who runs Moor Galloway, the company which is converting the Gothic Victorian building into flats, claims his company is being taxed at 85 per cent under a change in legislation, announced by former Chancellor George Osborne in 2015, which came into effect last month.

Kirbymoorside-based Moor Galloway converts old buildings, including former schools and even a synagogue, into apartments and then rents them out.

Mr Whalley said he had over 400 tenants, many of them who had rented for a long time, across Teesside and was concerned about the future of his business if it was continually hammered for tax.

“We have been caught out by regulations that are designed to curb the buy-to-let market,” he said. "Any money that I borrow to do the building, I can’t claim back the rate of taxation on that. I am taxed at 85 per cent.”

He said the legislation meant if he couldn’t claim the interest costs back his tax was 85 per cent - which could rise to more than 100 per cent, affecting the feasibility of his business.

“I’m hoping these rules will change and I wanted to make a statement ahead of the election on it.

"I have been in touch with Jenny Chapman in Darlington, and my own MP Kevin Hollinrake has been very helpful, but I tried to speak to Peter Cuthbertson about it and I haven’t heard back from him.

"Some of my staff who live in the Stockton South constituency also tried to speak to James Wharton there about it, but he ignored their correspondence.”

Darlington’s Labour candidate Ms Chapman said she was concerned about the fact landlords buying new homes were not taxed, but those like Mr Whalley who were investing in and recycling older buildings were being hit.

She said she had been planning to speak to the Treasury when the election was called.

Matthew Snedker, Green candidate, said the demise of the arts centre was “tragic” and blamed lack of council investment. He said the Greens would put zero tax on building materials used for repurposing old buildings. Liberal Democrat candidate Anne-Marie Curry said 85 per cent tax was “ridiculous” and said it would only push up prices for tenants.

Conservative candidate Mr Cuthbertson declined to comment, and UKIP’s Kevin Brack was not available for comment.