Government to temporarly scrap stamp duty up to £250k?

tootsmyboots

I wonder if we will count as FTBs then if it does come in. We are renting at the mo, having sold our house last year and are buying a house at the moment. Hmmm

chris.lewis

Hi,

I'm currently in the process of buying a new build flat, I have reserved the property with the developer but have not exchanged yet, if the stamp duty is scrapped will I still have to pay it?

Chris

poppysarah

Should they be allowed a budget this close to the election? It seems a waste of time and energy.

They aint got no money left and the country's in a mess. Anything they give away they will be sneaking back some other way.

Cannon_Fodder

chris.lewis wrote: »

Hi,
I'm currently in the process of buying a new build flat, I have reserved the property with the developer but have not exchanged yet, if the stamp duty is scrapped will I still have to pay it?
Chris

Maybe not. You don't pay it until completion.

You might have to pay if it is temporary policy or if after the election whoever gets in has to scrap it to stop a run on the pound, and your flat takes a long time to get built.

I wouldn't worry, until you see the small print for it, later today.

Sammy85_2

IF he annouces this stamp duty break then we'll all end up paying for it anyway, fuel and booze duty are all going up and its quite possible we'll see VAT go up along with income tax in the near future. No government just gives money away.

neas

For us 1% would save us 1.8k or so of the upfront costs (which total around 4-5k)..so now its around 2-3k costs (solicotrs and mortgage/valuation costs)

Its a help for us. Also whats better to do? negotiate 5% and pay 1% stamp duty? or negotiate 5% and pay 0% stamp duty.

The stamp duty is not a 'negotiation' point imo... you pay it to government and everyone is expected to pay it (or was). So its money straight in your pocket to either top mortgage up with or to decorate once you get in.

We havent foudn a house yet but this would certainly be a bonus for us while we look for next year.

PLSteve2

I'm not sure what to think! I complete on Monday next week - I'm hoping it is immediate as it will save me £2350! I did find this however...

CLAUSE 116 AND SCHEDULE 33: STAMP DUTY POWER TO VARY STAMP DUTIES
SUMMARY
This Clause and Schedule provide a power to allow stamp duty avoidance devices to be countered as they arise. Under the power, regulations may be made to vary any existing stamp duty with immediate effect, subject to approval by a House of Commons vote. The power cannot be used to vary rates or thresholds and can only be used for cases involving land, stock or marketable securities. And any regulations will be temporary, as they will not stand unless included within a subsequent Finance Bill.
DETAILS OF THE CLAUSE
The Clause gives effect to Schedule 33.
DETAILS OF THE SCHEDULE
Paragraph 1 provides a power for regulations to be made to vary any existing stamp duty.
Paragraph 2 limits the use of the power to instruments which relate to transactions involving land, stock or marketable securities.
Paragraph 3 prevents the power being used to vary rates or thresholds.
Paragraph 4 applies an affirmative resolution procedure. Regulations made under this power cease to have effect if the House of Commons does not approve them within 28 days or rejects them within that period.
Paragraph 5 provides for repayment of any additional duty if the regulations are not approved, and specifies a claims procedure comparable with that applying to other claims for stamp duty repayments.
Paragraph 6 provides that, if the regulations are not approved, instruments executed while the regulations were in force will be duly stamped whether stamped in accordance with the regulations or in accordance with what the law would have been apart from the regulations.
Paragraph 7 provides that the regulations will be temporary.
Paragraph 8 provides a power to make transitional, supplementary and incidental provisions.
Paragraph 9 concerns interpretation.
BACKGROUND
This provision provides a mechanism for stamp duty avoidance devices to be countered as they arise and with immediate effect, as is already the case for other taxes including stamp duty reserve tax. Under the existing legislation, in Section 50 of the Finance Act 1973, stamp duty changes can only be made with immediate effect at the time of a Budget.


Fingers crossed it does happen, as it would be a nice unexpected bonus!!

sarah_elton

The BBC rumour says that this will be for first-time buyers. How will that be defined do you think?

Our bank are calling us FTBs as we aren't selling anything. OH and I have both previously owned properties but I sold mine in Feb 09 (OH long before that).

Currently going through the sale process at £231k. If this goes through but we don't qualify I'll be unimpressed!

morg_monster

Got to admit that hearing this made me feel pretty sick yesterday! We bought as FTBs in dec right at the limit (250,000).
Oh well that's life isn't it. Nice to see the market will become even more warped around that point than it already is! And obviously any house bought at around this point is going to have to go up in value a lot (ie a good chunk over £250,000) before you can sell it for more than what it was bought for.

Although, I will believe this when I see it. There'll be a group of people (small, probably) even more annoyed than us if it does come in - those who bought somewhere between £125,000 and £175,000 betwen 1st Jan and whenever this comes in. That seems completely unfair to those caught in that narrow window - they ought to backdate it at least to 1st Jan.

marc-h_2

sarah_elton wrote: »

The BBC rumour says that this will be for first-time buyers. How will that be defined do you think?

Our bank are calling us FTBs as we aren't selling anything. OH and I have both previously owned properties but I sold mine in Feb 09 (OH long before that).

Currently going through the sale process at £231k. If this goes through but we don't qualify I'll be unimpressed!

You would think it would mean that only people who had never owned a house before, either jointly or on their own would be eligible.