Finance and Taxation Reform Press Releases

Armed services hit by tax raid on landlords

Sally Walmsley
Written by Sally Walmsley

Military personnel who rent their homes out whilst stationed away  are being hit by the Government’s tax hikes on private rented housing.

A new report out today by the Royal United Services Institute said 59 per cent of married members of the armed services own their own home and for those who rent this out when they are posted either abroad or elsewhere in the UK:  “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.

David Smith, Policy Director for the Residential Landlords Association, said: “Today’s 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.

“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.” 

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Communications Manager for the RLA and award-winning Editor of RPI magazine. With 16 years’ experience writing for regional and national newspapers and magazines she is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and editorial content for our media partners.

She issues press releases promoting the work of the RLA and its policies and campaigns to the regional and national media and works alongside the marketing team on the association’s social media channels to build support for the RLA and its work.

3 Comments

  • There is no logical power of thought in the Treasury. It’s manned my muppets. The fact that someone of the vapid calibre of George Osborne was Chancellor tells you all you need to know about the respectability of these morons.

    • It is an appaling abuse of power coupled with a frightening change to the tax law in the UK which passed through unchallenged. How long before they behave like the Cypriot shambles of a government and start withdrawing cash from peoples bank accounts?
      If they get away with this, anything is on the cards (taxi drivers and hauliers being taxed on the fuel they have used as if its profit – Builders being taxed on the materials they use as if those are profit not a cost?) scary stuff.

  • Sally has given yet another perspective on the S24 tax grab which I believe to be the only time in British history that people with businesses have been taxed on income, not profit. Soldiers are not the only people being severely hurt by this tax, but it gives a great perspective to the depth of the damage that is being caused by this unfair, brutal and illogical tax grab which only affects the PRS landlord, not the corporate landlords. I wonder why?
    Everyone with a rental property with a mortgage is effectively being fined for doing so and providing for their futures and not relying on handouts. This S24 tax has to stop. We talk about fairness in this country all the time, but I hear a deafening silence on this one so far. In who’s interests is this other than the tax man?

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