We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Stamp duty threshold increased to £175k for one year
Former_MSE_Dan
Posts: 1,592 Forumite
Posted 2 September 2008
What's it about?
On Tuesday 2 September, the Chancellor announced the threshold at which home-buyers pay stamp duty will rise from £125,000 to £175,000, starting Wed 3 Sept effective until 3 September 2009.
What's Stamp Duty?
'Stamp duty land tax' is a tax payable when you buy a property for an amount over a specified threshold, set by the government. You pay a flat 1% of the price that the house/flat/mansion was bought for!
The more expensive the house the higher the rate, although bizarrely if you go above the threshold you pay the higher rate on the whole amount not just the excess (one reason Martin calls it the UK's most stupid tax)
What does this suspension mean?
If you buy a residential property in the next twelve months, for between £125k and £175k, you'll pay absolutely nothing in stamp duty, saving a possible £1,750 max (if price is under £125k, you'd have paid nothing anyway).
Properties costing over £175,000 will still attract a flat 1% stamp duty payment, or more depending on the tiers, e.g. a house costing £220,000 means you have to pay £2,200.
Why's the government doing this?
After nearly a year of falling house prices, amid other signs of a slowing economy, the government hopes to encourage more people to buy houses; the idea is that slashing the tax payable will inspire more purchases, and therefore halt the decline of house prices.
Whether or not this is a good idea, or sound economic strategy is up for debate!
[threadbanner]box[/threadbanner]
PS thanks to the posters below for starting a debate, this thread was inserted to provide a factual explanation of what's happened.
Former MSE team member
0
Comments
-
Just announced on the beeb.Illegitimi non carborundum.0
-
0
-
Times just reporting the same.
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article4659032.ece
Applies for one (1) year only from 3 Sept 2008 and before 3 Sept 2009.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Short term, quick fix....hang on...isn't that how we got here? Little forward finanial planing?
My guess is the hasty first time buyer will surge ahead with this (I'm trying to work out on paper if it would be beneficial financially if not aspirationally for us!) and then, should the economy still be faultering the reposession stuff Hazel Blears annouced will be even more under pressure..........0 -
Look out for starter homes to dip in value in September 2009
0 -
bbc says this will mean approx 75,000 people will benefit (based on last years figures)0
-
lostinrates wrote: »My guess is the hasty first time buyer will surge ahead with this (I'm trying to work out on paper if it would be beneficial financially if not aspirationally for us!) and then, should the economy still be faultering the reposession stuff Hazel Blears annouced will be even more under pressure..........
The most you will save is GBP1750 (1% of 175k). Surely the decision to purchase a house or not will not be swayed by such a minimal amount of money?In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
This is going to save me $1550 in the next week or so, fantastic timing.0
-
The most you will save is GBP1750 (1% of 175k). Surely the decision to purchase a house or not will not be swayed by such a minimal amount of money?
but in combination with an interest free loan for five years and a serious deal we might be persuded to buy in London and postpone our 'real lives'. The stamp duty alone, no...but on the plus side it will deal with a lot of the 'and stamp duty paid by vendor' deals. 0 -
Still, its not much use if you have'nt got a mortgage or more importantly, you have not saved for a deposit.... oh wait, the government are going to give you a "free" 30% deposit... Madness
Viva la revaloution0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards