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Stamp duty on purpose built student accommodation

01 Dec 2015

Following the UK chancellor's recent announcement of the 3% rise in stamp duty on buy-to-let, to be introduced in April next year, we thought we'd look at the tax benefits of purpose built student accommodation (PBSA)

We are not licensed to give financial or tax advice, so please confirm with your tax advisor the exact rules for your financial situation. However, typically the situation is:

Note, for tax purposes, PBSA must meet the following criteria:

The building must:

Whilst we're at it, we may as well point out that the average gross rent of buy-to-let is 6.3% (according to Countrywide Quarterly Lettings Index, Q2 2014), whereas the net rent of purpose built student accommodation is typically 7-8%. Plus, most PBSA has a 'hands-off' option, meaning you won't have to find tenants, nor service and maintain the units, nor get a phone call in the middle of the night saying the roof is leaking!

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