Section 24 hits our Armed Service men and women

by Property118.com News Team

9:31 AM, 1st June 2018
About 3 years ago

Section 24 hits our Armed Service men and women

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Section 24 hits our Armed Service men and women

Military personnel who rent their homes out whilst stationed away are being hit by the Government’s Section 24 tax hikes on private rented housing.

A report by the Royal United Services Institute said 59% 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.” 

The Royal United Services Institute (RUSI) is the world’s oldest independent think tank on international defence and security. read more


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Comments

Monty Bodkin

16:26 PM, 3rd June 2018
About 3 years ago

Reply to the comment left by Michael Barnes at 03/06/2018 - 14:31
"the source information does not support it"

Page 12;
taxation on rental income and recent changes to ‘buy-to-let’ legislation makes this increasingly financially difficult for service personnel.

Neil Patterson

8:20 AM, 4th June 2018
About 3 years ago

In my previous roles I have helped Service personnel in the past with BTL mortgages often because they want to get on the property ladder.

Therefore, from my own personal experience I know some will be affected by s24. The numbers will always be debatable as they are with non-military landlords.

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