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The UK's worst tax... stamp duty Blog Discussion
Comments
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I tend to think inheritance tax is the worst. I agree with its premise, but like Martin says it is the way it is administered that is terrible. If the chancellor cannot stop the loophole that makes the very rich immune he should cancel the tax and tax estates some other way. I also agree that Stamp duty is badly administered.0
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Originally Posted by Sparkey
"We are going to purchase my parents house next spring but are facing a £7k stamp duty!. Is it legal to reduce the asking price to £249,950 and pay the difference by cash to my parents?
Would be v.interested to know."
People have offered far less on a property for a quick sale. I don't think you'll have a problem.0 -
Sparkey a friend of mine tried this but his solicitor would not allow him to do it since he deemed it to be fraud which he was not willing to get involved in.
IvanPast caring about first world problems.0 -
I agree that the way Stamp Duty is arranged is poor but in my opinion ...
the UK's worst tax is .... 17.5 per cent VAT on energy saving products (such as draught excluders, loft insulation, secondary glazing, energy saving bulbs).
Please can ANYONE explain the logic in charging such a tax on energy saving products?0 -
ringo_24601 wrote:You could make a claim against you negligent solicitor.. shouldn't this have been picked up in your searches?
I thought That it might have been picked up on the search but apparently not. Thanks0 -
overworked_underpaid wrote:I agree that it should be 1% across the whole board but I somehow doubt that this will ever be implemented.
This is exactly what it was until Gordon Brown introduced tiers at £250k and £500k.
:eek:"Whenever you find yourself on the side of the majority, it's time to pause and reflect." - Mark Twain0 -
Charge stamp duty to those that sell homes with no stamp duty on first time buyers. Will help to get first time buyers onto the property market. Doing this would have some serious effects though, people especially older will lose out as looking at capital gains as a way of funding their retirement with the pension crisis and resent the fact that they would have to pay stamp duty when they move or downsize. This tax would effectively help people first time buyers and families looking to buy bigger homes and upsize.
Would there be less incentive to downsize then? People who have paid of their mortgage and not want to move out now because of having to pay stamp duty, so would eventually reduce the amount of stamp duty collected as revenue by the government, could have serious consequences for public expenditure.
There would be disincentives people in large family homes to move out of them. Which could affect the number of large homes in the market, less transactions of larger homes, as people would keep them rather than sell and pay stamp duty on moving homes?
That is if Stamp duty worked on the same threshold level, the larger homes would be worth more… and so one person (elderly individual) would stay in there as it is worth more and would live in it until they die so it is inherited by family – implications - more under occupied units?
Would there be an increasing demand for homes than already exists?
If we lose more family homes on the market then where will families chose to live? - Can’t access larger homes so end up living in overcrowded conditions?
In UK you do not pay capital gains tax on your place of primary residence. Therefore this could counter the argument of people not moving out. Paying stamp duty by selling their home could be offset by the savings made by not paying capital gains tax.
But could this have implications for buying second homes, people own one home, but instead of selling their existing home- buy another for investment? As they dnt have to pay stamp duty on buying, so more second homes bought by people that are already homeowners? Are these second homes left vacant? Or would there be exemptions so that you would have to pay stamp duty tax on a second property to discourage
Would stamp duty on sellers encourage more investors in new market housing? Or again are they exempt?? - And even if they do, is this even a problem (investors in New market housing)
Would need to carefully think of these issues and consequences, as these kinds of reforms generally tend to throw up more problems than solutions.
What are your opinions on stamp duty reform?0 -
I actually think National Insurance is the UK's worst tax...
It's deceptive, some people believe it's ring fenced for the NHS or pensions - witness how many retiree's believe that 'because they've paid their stamp' they've got an entitlement to a better pension than they get.
It's not recoverable when people make pension contributions or gifts to charity.
It's only paid by those people in work, people who live off their investments don't have to pay it.
It allows Gordon Brown to promise not to raise income tax and then use weasel words to suggest that even though national insurance is a tax on income it's not income tax.
It requires a whole host of civil servants to administer, coupled with an expensive outsourcing contract with a foreign IT company to run the computer systems needs.
Scrap NI and raise income tax to make up the lost revenues, it'd be a lot easier to manage and a lot fairer.0 -
I just get sick when I think of how many times over my money is taxed. I paid tax when I earnt it and tax on the interest it earned and then Mum and I sold both our houses and bought a house with a granny annexe. Dear Gordon took another 22k in stamp duty!The best things in life are NOT free - but they sure are cheaper with MSE!:j0
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It's even worse for commercial property. I'm buying an office for 240K +42K
vat. OK, The vat can be claimed back, but the price is still judged to be 282K
so I have to pay an extra £6000. A tax on a tax.
Anyone any tips on this?.0
This discussion has been closed.
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