The UK's worst tax... stamp duty Blog Discussion

IFA

At least raise the thresholds to:

1% > 175000
3% > 300000

for starters!

Any more loopholes for avoiding paying these stupid taxes muchly appreciated

buglawton

I don't agree with an arbritrary tripling if the tax at 'some' threshold (probably just above the transaction you are thinking of doing...). That in fact is what is wrong now. Remember, 1st time buyers have to buy what they can get at the budget and may need to move twice in 10 years as the family grows or jobs change - that's over £17,500 in 10 years assuming 1st transaction is £150,000, other 2 are over £250,000. Then add all the interest plus some student loans to pay back perhaps.

zekepes

Sparkey wrote: »

Very interesting blog.
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.
Kind Regards
Sparkey
:rolleyes:

I think some people do seem to get away with this. Maybe?

We were tempted by a house a couple of years back that was on the market for £565K. We 'forgot' about stamp duty (LOL!!!) which would have been a whopping £22.6K on the full asking price (not that we were going to offer anything near it). Long story short but we decided to stay put and extend instead of getting a megamortgage.

This same house was soon reduced to £545K with another EA and sold soon afterwards. According to 'our property' it sold for £176K!!!!!!!!!!!!!

I know that they were possibly looking to swap to a smaller home (the EA said they would be interested in swapping with ours which was worth £275K at the time) as they were buying a second home in portugal but wanted a smaller base here. The EA did hint that this could be a way round the whooping stamp duty bill.

Surely that isn't legal?!

wombat50

I am greatly concerned that the public are not aware of the exemption from stamp duty on house purchases of £150,000 and under if you are in a Designated Disadvantaged Area (DDA) which is on the HM Revenue and Customs site as I only by chance realised that the property I am about to purchase at £130,000 was exempt from Stamp duty as it fell under the DDA. To see if you are eligible you just type in your postcode.

libby73_2

I am about to purchase a shared ownership home as a keyworker. I will own 30% the housing association will own 70% and yet I still have to pay the total stamp duty and if I ever manage to buy it outright in 3 steps I may have to pay it again with the last payment. Seems madness to me.

santashelper_2

stamp duty needs to be raised

zappomatic

libby73 wrote: »

I am about to purchase a shared ownership home as a keyworker. I will own 30% the housing association will own 70% and yet I still have to pay the total stamp duty and if I ever manage to buy it outright in 3 steps I may have to pay it again with the last payment. Seems madness to me.

That's not correct. You can either pay stamp duty on the full value outright at the start, or pay it on your share plus rent as you staircase.

[Deleted User]

santashelper wrote: »

stamp duty needs to be raised

Dammit, i want my thanks back!

I paid 2 grand stamp duty tax for my little 2 bed terrace last year. I was a first time buyer, that was ridiculous. The level has taken no account of house price rises and it's a terrible way of stopping people getting on the housing ladder

clarkybravo

Stamp duty loophole. Avoid Stamp duty completly by taking out a Sharia mortgage. Under islamic law, muslims are not allowed to pay interest on a loan. Instead, they 'rent' the property from the lender for the term of the mortgage after which the property is transfered into their name which due to the non-monetary nature of the transfer is tax free and does not incur stamp duty. Apparently, many people are waking up to this and HM Revenue and Customs are taking steps to close the loophole(but not yet!).

denisiw

pomfretian wrote: »

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 ideasOut. of interest what happened to our north sea oil :

I think you'll find that Maggie's Tories squandered the income from that.

Denis