Stamp Duty changes

Thrugelmir

SuzieSue wrote: »

From BBC News website:

The latest statistics from the Land Registry showed that, in November 2011, there were 121 homes sold for more than £2m in England and Wales. That accounted for just 0.2% of the 57,967 homes sold that month.

Of these 121 homes, 98 were in London.

However, the move is predicted by the Treasury to raise £150m in the next financial year, rising to £300m by 2016-17.

If you project the figures on this basis for a whole year. Then the Treasury will benefit by around £2 billion pounds.

Which is more than the reduction of tax from 50% to 45% will cost, at around £900 million.

Interesting stats.

phoebe1989seb

ognum wrote: »

Just Rightmoved a 30 mile search from my city and there are over 60 homes at 2 million plus, more than I thought there would be!

Gosh yes, me too......there are 198 within 30 miles of us.......most surprising, although Sandbanks does come into the search

brit1234

des123 wrote: »

how would this all help first time buyers . i dont understand . this will not help at all people buying their first home.

.

Yes it will by reducing the huge distortions the Central London markets has on the National monthly house price figures. At present the houses in central London push up the National house price surveys upwards boasting sellers expectations they can keep their prices higher. With that reduced the true state of falling prices will be seen month after month making sellers price more realistically. That is it will help first time buyers.

Thrugelmir

brit1234 wrote: »

.

With that reduced the true state of falling prices will be seen month after month making sellers price more realistically.

Anybody that pays £8 million plus for a property in Mayfair. Isn't going to be bothered by 7% stamp duty.

Oneday77

Thrugelmir wrote: »

Anybody that pays £8 million plus for a property in Mayfair. Isn't going to be bothered by 7% stamp duty.

Anyone who can afford £2million+ on a house will be interested in the 7%. By using all the available tax loop holes in the first place they made the only required to buy it.
They will now just actively try to save tax elsewhere.

thelawnet

There's a good guide here:

http://www.ft.com/cms/s/0/8205ff30-7383-11e1-aab3-00144feab49a.html

March 1993: Over £60k- 1%. Equivalent to over £200k today.
July 1997,£250k-£500k - 1.5%, £500k+ -2%. Equivalent to £700k and £1.4m today.
The 1.5% and 2% rates were raised to 2% and 3% in 1998.
In 1999 this became 2.5% and 3.5%, and in 2000 3% and 4%

A £500k house in 2000 would be worth on average £1m today.

Basically HPI has made the government lots of extra stamp duty, both by having a % of a higher sales price, and also by dragging much more modest houses into the net.

When the 4% band was introduced, a £500k house would have been a luxury house, anywhere in the country. Today in many areas it's just a standard family house.

Regarding the silly jumps, I would suggest taxing it something like income tax, so:

£100k - allowance @ 0%
next £150k, taxed @ 2% (£3,000 max)
next £250k taxed @ 6% (£15,000 max)
next £500k taxed @ 7% (£35,000 max)
above this @ 8%

Here's a comparison of the two models:
£100k - nothing vs nothing
£125k - nothing vs. £500
£150k = £1,500 vs. £1000
£200k = £2,000 vs. £2000
£250k = £2,500 vs. £3000
£260k = £7,800 vs. £3,600
£300k = £9,000 vs. £6,000
£400k = £12,000 vs. £12,000
£500k = £15,000 vs. £18,000
£750k = £30,000 vs. £35,500

HAMISH_MCTAVISH

brit1234 wrote: »

.

Yes it will by reducing the huge distortions the Central London markets has on the National monthly house price figures. At present the houses in central London push up the National house price surveys upwards boasting sellers expectations they can keep their prices higher. With that reduced the true state of falling prices will be seen month after month making sellers price more realistically. That is it will help first time buyers.

Nonsense Brit.

Please keep your propaganda for the "debate house prices" board.

As you well know, prices are stable in the vast majority of local areas so are simply not "falling month after month" at all.

The latest RICS report showed stable prices in 68% of local areas.

That same report showed prices rising in another 12% of local areas.

And falling in just 19% of local areas.

And that's in winter, when prices are supposed to be falling in most areas.

Less than one house in five in the UK is falling in price at all, and the vast majority of those are only falling at a rate of 1% to 2% a year, which doesn't even come close to matching the increased costs of renting over buying.