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

buglawton

Uh, what woke this thread up?

senior9moments

Well we tried last year but after much stress and finding out how much stamp duty we would pay on another property we decided to stay put.
We really wanted to downsize as the house is too big, but to buy something smaller would cost practically the same in this area, Bucks, but the costs of estate agent, solicitor and finally the last straw the diabolical stamp duty, which in all would have totalled around £22,000, prompted a retreat!!
We're both retired, hubby had to take ill health retirement a year ago, so we have severely reduced finances. We have come to the conclusion that it would be better to rent out our property and then rent something smaller. That way at least we wouldn't be tied to one house.
Still I digress, no doubt there are many pitfalls in renting, can't win really can you?!
But, the stamp duty is nothing more than 'daylight robbery', you'd be hard pushed to get a house in this area for £250,000 or less to avoid the big jump in tax. At least !!!!!! Turpin wore a mask!!
Time for coffee:coffee: and my medication!!;)

buglawton

It's what's known as a regressive tax. And I believe it is responsible for about 30% of potential sellers of ordinary homes (not much above council house size if at all) in the South East putting things on hold.

robinpe

Hi Martin
There seems to be a way to avoid stamp duty altogether and that is to become a Muslim. I understand that because Muslims are not allowed to pay interest, the last labour government brought about a system whereby Muslims could avoid interest payment and also avoid stamp duty.

Unfortunately, I don't know how it works but it should be available to everyone not just those belonging to one faith.

I also understand the super rich avoid stamp duty by setting up a company and purchasing the house in the name of the company. They of course become the only shareholder therefore in fact they own the house. When they want to sell the house, they just sell the shares and no new registration is required therefore no stamp duty is paid. I believe the company is set up offshore.

It's allright for some!

buglawton

Have a feeling that the Muslim solution is an apocryphal tale, and the company ownership route is being clamped down on by recent changes in legislation.

prt137

The 2% (£5000) step at £250K blights properties from £251K up to £300K. It's a quite arbitrary figure - there is nothing immoral in owning a house worth £260K, so why should it be impossible to sell it for more than £250K?

There should be a fairer system, such as the one Martin has proposed, or perhaps a sliding scale between £200K and £300K, so that the rate of tax increases only slightly as the price increases in this range.

Peter

buglawton

Yes, to annoy both the major parties that seem to support cliff-edge taxes like this, vote for something barmy like National Front. Maybe they've a more sensible taxation regime to suggest, that makes one want to get up in the morning & work for a living.

alanatorchard

Having read the blogs posted on Martin's site and explored the .gov site I cannot find the answer to - 'Why stamp duty Land Tax' is levied, who gets the money and what is the money raised used for?
As most people will recognise we only ask such questions when it impinges on our lives and as one who is in the throws of moving property it is adding over £10,000 to my moving expenses.
The irony of my case, and I suspect several thousand others, is we are being forced into a move because a) we cannot afford to live where we are anymore (northeast Kent), b)we are moving because we have finally found work but it is over 60 miles from where we live and it is not economical or environmentally correct to travel that distance every day by car (an essential for the job) and, c) at 70+ years old, I have to clear a mortgage that I have paid for since I started work in 1965, because any meagre pension I get is steadily being taken away by 'economic pressures' at present and in the near future, according to the news from the Con-Dems. party conference today (10/10/12):(

buglawton

You won't get an answer at the gov website.
UK has some cr*p tax laws because the govt things it can get these past the voting public.
Check how marginal your/your future constituency will be.
Then try the suggestion in the post above yours.

alanatorchard

The suggestion to vote for a marginal party would be fine except that IF they got in the need for maintaining the taxes as they stand will be inevitable because this government will have left us all in a worse state than that inherited from Labour, but don't get me started on that line:(
Somebody suggested to me that items left by the owner ie:fridge, dishwasher, lights etc can be seperated from the puchase price of the property, thus saving on a portion of the SDLT. Has anyone tried this and what were the savings?