MSE Leaders' Debate: Stamp Duty

Former_MSE_Wendy

This thread is specifically to discuss the Stamp Duty question in the guide:

Stamp Duty: MSE Leaders' Debate

To discuss or ask a question about the guide: click reply

Ergie

Its interesting to see that only Clegg actually answered the question about the marginal rates- although none of them were offering anything to make the system fairer. Obviously they need to raise tax, but an arbitrary transaction tax, with the steps that they have a ludicrous.

In London, you dont get that big a house for 1m, but that means paying 50k (at Labours proposed rate) in stamp duty just for the priviledge of moving house.

Its seems odd to me that they are obsessing about the first time buyers who only pay at 1%, so 1% of 250k is only £2500 anyway. Yes, its a lot for a first time buyer but compared with the 50k+ at the other end its totally inequitable. At the top rate of stamp duty, for many people, its the equivalent of many percent on income tax.

My final point would be that this is fine in a rising market but not in a falling or stagnant market. Why not just introduce capital gains on main residence but allowing rollover relief if re-invested in main residence within 12 months?

minniesquinn

I almost wish we had a separate party for London, because similar to what the SNP say about Scotland, London's property market is unique.

House prices are twice the average, yet there is no concession in terms of stamp duty. I own a one bed flat and feel truly stuck.

I've worked out that to move somewhere of the SAME value, I need to spend almost £18K in stamp duty, legal fees, and estate agents fees. :eek:

I'm disappointed that most of the parties focus solely on first time buyers and not the market as a whole. The rates should be similarly structured to income tax, or at least a middle ground of 2% applied somewhere (the current change from 1% to 3% at the £250K mark is absurd - £2.5K stamp duty for a £250,000 property, but £7.5K for £250,001).

If they want real social mobility and a buoyant housing market, just reducing the stamp duty back to its old levels would see that happen, and I expect the increase in house purchases would compensate for some of the money they would lose (did they ever really earn it?!).

As it stands, my husband and I, both in our 30's, can't begin to imagine starting a family in this city - how could we afford the increase in mortgage, the taxes, the transport, plus a child too with all the nursery charges (£1K per month!)?

Governments need to stop looking at statistics and number crunching and start looking at how people are really affected by the choices government make and what the long term implications of these policies really are.

And it would be good if they stopped thinking everyone had lives like theirs - most people are middle-earners not high earners, commuters not second home owners, with children but without access to free childcare, tax payers but not accountants (or not able to afford an accountant to do their returns for them), law abiding but watched over. And some of us would like to start a family, but have to give the government £11K+ just for the privilege. Rant over. Any MPs reading this??

Mamadude

I am amazed that this thread is not commented on more! Surely the extortionate Stamp Duty Land Tax is something that concerns quite a few people in the UK?
My own take, well I am in the throws of buying a house, I have scrimped and saved to find the deposit, 25%, a HUGE amount but as I do not tick every box that the all powerful banks/lenders dictate I must, I have no choice, and am having to fork out £9000.00 in SDLT. Why am I buying a house, well it is costing me and mine £800.00 pcm in rent and to get a mortgage it will cost me a mere £536.00, so I am jumping in. I am not a first time buyer as I have bought in the past and therefore can get no reduction in the tax.
I do not understand why the wage earner is taxed on a tiered basis, but not on the tax for purchasing a property. Why is there a difference, it is still a tax? The SDLT has been a con for many years, unless of course you are an MP, then it appears to not be so much of a problem!
It will of course not be addressed by any party as it is a very lucrative little earner for ANY Government no matter how unfair it is.
Is there ANY MP or MSP who has the guts to stand out from the sheep and address this, if so then he/she would definitely get my vote (and a few others I'm sure)? :T
Go on I dare you ..............