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What is stamp duty for??
vicky_kidder
Posts: 128 Forumite
Hi all,
Sorry if I appear a bit silly asking this question, and please be nice in your replies (:o ) but all the furore over stamp duty has got me thinking. What exactly is it for? Why on earth, when purchasing something do we have to pay the government ANYTHING? What are they doing for this money? And why does no-one question the fact that the government just says, 'erm, yes, I think we'll have some of that'? It's almost as if they are saying, 'well you can afford to buy a house so we think you can just give us some money. Why? Because we are you government and we said so!'
I know it is meant to be a tax of some sort, but a tax on what?
Gosh, I really don't understand this whole business at all.
Sorry if I appear a bit silly asking this question, and please be nice in your replies (:o ) but all the furore over stamp duty has got me thinking. What exactly is it for? Why on earth, when purchasing something do we have to pay the government ANYTHING? What are they doing for this money? And why does no-one question the fact that the government just says, 'erm, yes, I think we'll have some of that'? It's almost as if they are saying, 'well you can afford to buy a house so we think you can just give us some money. Why? Because we are you government and we said so!'
I know it is meant to be a tax of some sort, but a tax on what?
Gosh, I really don't understand this whole business at all.
Money Saved for a house deposit so far = July 2008 £3331.09, August £4396.40, September £5,048.37 (Target = £9,000 by July 2009) 56% there already!:j
If I have helped you in any way, please thank me!
If I have helped you in any way, please thank me!
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Comments
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As you say, its another tax, same as VAT. Why the british public put up with it is any-ones guess!0
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income for the govt.
same as vat.
Plus all the jobs involved in collecting it etc.0 -
Your also technically supposed to pay capital gains tax on any profits from the sale of a house too.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Originally only very big expensive house sold for over 125k so it was a tax on the very rich. Over time houses went up in value and the government began to see larger and larger cash generated via this tax and as such became less keen on raising the threshold this went on and on until were now in the stage where anyone buying an average house now has to pay0
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The American's started a revolution because of it
“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
my husband and i were talking about this today and as far as can see we pay tax on what we earn if we want to save for a house we pay tax on our savings and then when we buy the house we pay tax again!!! three lots of tax on the same money!!!!I don't get nearly enough credit for not being a violent psychopath.0
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p.s oh and if we pass on the house to our children when we die they pay inheritance tax so make that four!!!I don't get nearly enough credit for not being a violent psychopath.0
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Wrong.
CGT is payable on the sale of property only if it is not your main residence.
Your main residence is exempt.
Technically I think you are both right.
Yes, CGT is payable on the sale of property, but if it is your main residence you will be entitled to Private Residence Relief on the gain made.Today is the first day of the rest of your life0
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