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Rationale for Stamp Duty and Bands

2 questions

1. Why should you pay tax to move house?

2. Buying a house for 119995 you pay no tax, a pound more you pay 1200 - how does this make sense? If income tax was charged this way there would be an outcry and avoidance would be rife.
I think....

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
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    Do not look for a black cat in a dark room in which there isn't any cat at all! :rotfl:
  • theGrinch
    theGrinch Posts: 3,133 Forumite
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    use your vote at the general election
    "enough is a feast"...old Buddist proverb
  • Plasticman
    Plasticman Posts: 2,554 Forumite
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    michaels wrote:

    1. Why should you pay tax to move house?

    We pay tax on everything else so why not this!
    michaels wrote:
    2. Buying a house for 119995 you pay no tax, a pound more you pay 1200 - how does this make sense? If income tax was charged this way there would be an outcry and avoidance would be rife.

    You’re right, it doesn't make sense and IMHO is complete cr*p

    theGrinch wrote:
    use your vote at the general election
    Unless I've missed something none of the politicians are offering to reform stamp duty. Unless a government is willing to accept reduced revenue from stamp duty, making it fairer would mean that many people would pay more. Not a very positive message at election time.
  • VH
    VH Posts: 501 Forumite
    michaels wrote:
    1. Why should you pay tax to move house?
    Why should you pay tax at all?
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    michaels wrote:
    2 questions

    1. Why should you pay tax to move house?


    2. Buying a house for 119995 you pay no tax, a pound more you pay 1200 - how does this make sense? If income tax was charged this way there would be an outcry and avoidance would be rife.



    I agree the stamp duty tax is an unfair tax, it was originally a war tax (against france), but they continued it... I mean the wars been over for some 300 years :rolleyes:


    It is ridiculous, that a buyer loses his effective tax free allowance by going over the band by £1 !! How would income tax payers feel if they lost their £4745 allowance if they earned over basic rate by £1 !
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