A trade body is claiming that armed service personnel who let out their homes whilst stationed away are being hit by government tax hikes on private rented housing.
The Residential Landlords Association says a report from the Royal United Services Institute notes that 59 per cent of military personnel with spouses own their own home, and for those who let this out when posted elsewhere it says “taxation on rental income and recent changes to buy to let legislation makes this increasingly financially difficult for service personnel.”
The tax increases introduced over the last two years include taxing a landlord’s rental income rather than their profits, a phased reduction in mortgage interest relief to the basic rate. and reduced ability to reclaim the costs of wear and tear.
“The report is yet another indictment of the government’s confused approach to the taxation of private rented housing which is leading to a loss of affordable homes” claims David Smith, RLA policy director.
“The country will rightly be angered that armed forces personnel wanting to rent property out whilst on active service are being hurt by this needless, ideologically driven assault on rental housing.
“Faced with a severe housing crisis we need a tax system that supports growth and encourages the provision of the new homes to rent we need to meet rising demand. It is time for the Treasury to think again” he adds.