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The UK's worst tax... stamp duty Blog Discussion
Comments
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Well done, Martin - I quite agree that the stepped rate of Stamp duty is ridiculous and must make it very difficult for people selling property near the break points. It would make far more sense to have a smoothed-out rate - flat, as you outline, would be vastly better than the present system, but something increasing in bands, like income tax, would be even fairer.
I'll vote for your campaign for Stamp Duty reform.0 -
I would just like to add that the Americans kicked us out partly over stamp duty being an unfair tax in the revolution. Also the government work for US not the other way round, but they only know it at election time. Perhaps we should kick the government out and demand a fairer tax regime. Lucklily i hae the option of emigrating if Gordon gets too greedy and I would take my company with me depriving him of the mutitude of taxes we pay him.0
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Since all the parties are now trying to be green surely one of them has to do something about stamp duty.
About 4 years ago I moved job and instead of commuting around 6 miles to work each way I am now commuting 25miles each way (on your bike as Tebbit said).
I am therefore contributing tons of CO2 to the atmosphere each year (trust me, public transport isn't an option, it would take 1.5+ hours each way assuming perfect conections as opposed to 35mins). I'd love to move closer to where I now work but the sums just don't add up. To move to an equivalent house (over £250k since I'm in the SE) nearer work I'd have to donate thousands to the government, it is cheaper for me to keep polluting until I retire. CRAZY
Jeddy0 -
Very timely for me as I'm exchanging on my flat tomorrow which is being sold at £250,000. It could go for more like £255-260,000 and the estate agent even said it should but pointed out with the extra huge hit of stamp duty that kind of price would deter many if not all buyers. I know it would me. So I get hit by the stamp duty on selling because I don't get as much for my flat as I maybe should AND i have to pay it on my new place. Great. My new place is going to cost me about £9,000 in stamp duty so the total effective cost could be up to £20,000.
I have two questions:
1. Why does the purchaser pay it rather than the seller as by and large they are the ones making the profit? Does anyone know? Or why aren't both sides hit like with VAT?
2. Following on, one house we looked at was a rennovation by a developer of an older house. He offered to pay the stamp duty as an incentve to sell. He wantedto do that rather than drop the price by the equivalent amount. Do developers get to write it off or something?0 -
The bottom line is the chancellor does not give a hoot all he needs is tax revenues to pay for failed policies of a failed government bereft of ideas. Out of interest what happened to our north sea oil :0
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No doubt that stamp duty is illogical, outdated and generally undesirable.
But inheritance tax is far worse. Every pound a person manages to add to their net worth over their lifetime is taxed, via income tax, and on goods via VAT, and indirectly through other taxes. If you save too much you may get taxed on any interest you manage to make. If you invest wisely you'll get clobbered by capital gains tax. Then finally when you DIE, if you're worth what is now quite an average amount, the state wants 40% of it back in tax?!?!?! 40%!! It's evil. It has also got completely out of whack with average net worth, as it has not been adjusted upwards in line with increasing property values. So now an enormously greater proportion of people are paying it. And to avoid any significant proportion of it you have to be very on the ball and start planning about 10 years before you plan on dying. Martin, it's time for a campaign!!0 -
Martin I really hope you succeed in getting a campaign going on this. We live in the north and our modest 3 bed semi is worth barely £200,000. My husband ends up doing a ridiculous work away from home all week schlepp (which everyone hates) because we can't afford to relocate southwards. Equivalent properties in the right area for his job add £75k. We could maybe stretch to this (crucifying ourselves with mortgage debt) but the £9k+ stamp duty is a massive deterrent. Where are we supposed to find an amount like this just to 'give away' without seeing anything for it???? It is a completely ridiculous sledgehammer approach to tax. At one time a £250,000+ house would have been the preserve of bank managers and accountants. These days it's the price the average Joe seems to need for a decent three bed in an area with reasonable schools and amenities.
Anachronistic bandings, unfair and WAY overdue for reform.Waddle you do eh?0 -
I live in a 3 floor house. The house next door has been converted into 3 dwellings each owned seperately. Could I do the same (without blocking up any doors of course) and put the top floor in my kids name, the 1st floor in my wifes name and the ground floor in my name, thus reducing the cost of each dwelling and avoiding/reducing stamp duty, but retaining the full value of the house?0
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I have to agree with a couple of others (particularly IVAN) that Inheritance Tax is far worse than Stamp Duty.
IHT is an iniquitous, immoral, evil government invention which should be abolished forthwith. You work all your life (and pay income tax) ... you save and invest (and pay tax) all your life if you are being prudent ... then you die and this cynical corrupt government grabs 40% of everything over £285k that you slogged your guts out to accummulate over the years.
This is no longer about taxing the rich (although even when it was it often resulted in many beautiful old houses being allowed to crumble away).
I was raised for most of my early life in a three up two down terraced house with no bathroom (violins out now please!) and was left absolutely nothing by my parents. But due to much hard work I now live in a nice cottage (on which I paid Stamp Duty!) and I have managed to retire on a reasonable pension and have accummulated some savings.
However, if I died tomorrow Gordon would fleece me by taking approximately £90,000 out of my estate .... out of my PREVIOUSLY TAXED personal wealth. So much for encouraging thrift and saving.
It is shameful that Martin has not seen fit to join the campaign against this truly abhorrent, !!!!!! piece of legalised government theft ... given the platform that he now has. I really hope that he reconsiders his position on this. If the Tories committed themselves to abolishing IHT they would probably win a landslide victory at the next election.
Yours ... Mister very bloody angry from Lancashire! :mad:Mark0 -
I don't understand why the % increases at various price thresholds? Let's say there was a uniform rate of 1% across the board. That's £1,000 on a £100,000 house and £10,000 on a £1,000,000 house. So, if you can afford a house 10 times more expensive than someone else them you pay 10 times more tax. Sounds reasonable to me.0
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