Having received Royal Assent on the 15th of September, the Finance Act 2016 will come into force as a law in the UK, excluding student accommodation from the higher residential Stamp Duty rates.
In March’s Budget announcement, former Chancellor George Osborne announced a new tiered system for Stamp Duty on residential property, which saw purchases on second homes and buy-to-let properties under become subject to a 3% levy surcharge – a law in place since April 1st 2016.
According to the Finance Act 2016, however, purchases of specifically designated student property will not be subject to the same tiered system for Stamp Duty as residential properties; since these types of dwellings are now being classified as commercial properties instead.
The new legislation will benefit investors of student accommodation, with this group now exempt from the Stamp Duty surcharge on properties below the mark.
Those purchasing student pads under will pay no surcharge as the current rate for these types of properties stands at 0%.
Last month, the University of College Admissions Service revealed the largest number of applications ever recorded for the 2016/17 academic year, with the number of university positions offered to students increasing by 3% from the previous year to nearly half a million.