Stamp duty surcharge

davidmcn

We don't know. Are they purpose-built as student accommodation (e.g. is that what the permitted use is for planning purposes), or are they just 1-bed flats which happen to be rented to students?

SDLT_Geek

If the student flats count as non residential because of their design, then SDLT will be due, but at the rates applicable for commercial property. The fact that they are available on individual 123 year leases had suggested to me that they were likely to count as individual dwellings. You had confirmed that they are self contained.

G_M

Roysee wrote: »

.....The guidance states:
2.8A Depending on its nature purpose-built student accommodation is treated as either residential or non-residential property for the purposes of SDLT. The purchase of such accommodation is not liable to the higher rates ...

....Result! Or have I got it wrong?

Is this 'purpose-built student accommodation' or is it simply accomodation that happens to appeal to students? Not the same!

Roysee

They are only available to students but I am not sure if that was stipulated in the planning permissions.

dimbo61

Not student pods ?
7/8/9% rent guarantee for 3/4/5 years !

davidmcn

Roysee wrote: »

They are only available to students but I am not sure if that was stipulated in the planning permissions.

Well, what makes them "only available to students"?

Roysee

Obviously I need to firm up on these details. Once I have the information I will come back. Many thanks again for your views

SDLT_Geek

Once you have the details you will need to test the facts against the statutory provisions in Finance Act 2003 section 116.


Section 116(2)(b) provides that a building used as "residential accommodation for students, other than accommodation falling with subsection (3)(b)" counts as a dwelling.


Section 116(3)(b) covers a building used as "a hall of residence for students in further or higher education" which will be non residential.


I suggest it would not be common for a hall of residence to be "sold off" bit by bit on long leases.


If the building is not "in use" at the date of the completion of the purchase then the statutory provisions at s.116(5) require one to look at what use it would be most suitable for.

SDLT_Geek

Here is some HMRC guidance on the limited cases where student accommodation does not count as a dwelling on the basis of being a hall of residence: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29957 It would not appear to extend to cases of self contained flats as a hall of residence will involve some sharing of kitchen / dining / bathroom facilities.

I understand that the class of planning might be important too, perhaps C2 or C3.