Private Landlords and Student Accomodation

The knowledgeable folk over at Pinsent Masons – www.out-law.com – report that “providers of student accommodation could be faced with significant VAT bills if they rent that accommodation to non-students during university holidays following new guidance from HM Revenue and Customs (HMRC)”.

The new guidance gives the term ‘student’ a “more specific and restrictive meaning” according to Jon Robinson, a tax expert at Pinsent Masons, the law firm behind Out-Law.com. It will mean that new residential accommodation for students or school pupils will only qualify for ‘zero-rating’ for VAT purposes if the accommodation is “solely” occupied by students, and if those students are in the process of obtaining a “generally recognised academic or professional qualification”.

The article can be read in full here:

http://www.out-law.com/en/articles/2014/february/restricted-definition-of-student-for-vat-purposes-could-affect-private-landlords-says-expert/