The Rev David Gilmore, rector of St Anne’s Anglican Church in Soho, was found guilty of “conduct unbecoming or inappropriate to the office and work of a clerk in Holy Orders”, the Evening Standard reports.
He had offered to let two servicemembers stay at the rectory while they attended a gay and lesbian Armed Forces conference in December 2009.
The tribunal heard that he entered the couple’s bedroom naked during the night when he knew they were having sex. He had also asked them to sleep in his bed.
The couple left early in the morning and made written complaints about his behaviour.
Mr Gilmore was barred from working as a priest for two years, a statement from the Diocese of London said.