Buy-to-let student accommodation
Acquiring a house or flat for student members of the family at university or college can present significant tax saving opportunities whilst at the same time ensuring your children have a safe pleasant home to stay in.
Costs of running the property can be covered by letting surplus rooms to other students. Expenses incurred can be offset against this.
Using the provisions of the Rent a Room scheme, the first £4,250 of rent received from 'lodgers' in each year is free of tax. Any sum over this amount is taxable in full. Excess rental income could will be covered by the personal allowance.
Even when the property is sold, any capital gains could be covered by two important tax reliefs available.
Thinking of purchasing a property for your children at university, contact us.