Advice is being offered to students to think about buying a property as a way of counter acting the costs of a university education,

This is coming from the Association of Chartered Certified Accountants , the ACCA, which describes the start of the academic year is a double-edged sword for countless university students. The opportunity of expanding their knowledge and hence improving their career prospects comes at a price as many will inevitably fall victim to financial debt.

Chas Roy-Chowdhury, ACCA’s Head of Taxation says: “Accommodation costs are one of the largest and ongoing expenses facing university students. As an alternative to renting they – and their parents – could consider buying a property for them to live in. Not only will this provide rental income, but it can act as a sensible investment for the future. Still, before considering buying accommodation, the tax implications involved should be considered, in particular capital gains tax (CGT) and inheritance tax (IHT).

As well as tax liabilities, potential buyers should be aware of other associated expenses including stamp duty land tax, associated purchase costs, council tax, buildings and contents insurance, furniture and fixtures and fittings.