Stamp Duty - when does it change !?

Lopo

Hi there,

Thanks in advance for any help!

Just wondering, when traditionally do Stamp Duty thresholds get changed ?

Is it following the Budget,...or after each new financial year as in April 6th onwards ?

Have tried looking it up, but had little success in fishing out an accurate answer...

Thanks, Lopo

Jeewhizz

Looking at last year's figures:

http://news.bbc.co.uk/1/hi/business/4833880.stm

The new threshold will come into force for property sales completed on or after 23 March.

That was in the budget announced 22nd March - so it's next day basically

The Chancellor will make his Budget speech to the House of Commons on 21st March 2007 at 12.30pm.

Jee

Lopo

Cool.....humble thanks....

Any idea (speculating of course) what the new figures could be like ?

Is there an expected major change anticipated/hoped for?

Lopo

Woby_Tide

only the lower level has changed in the last few years, the upper bands haven't changed since they were meddled with regularly in the late 90's


In July 1997, stamp duty increased to 1.5% on properties between £250,000 and £500,000. Over £500,000 increased to 2%.

In March 1998, stamp duty increased to 2% on properties between £250,000 and £500,000. Over £500,000 increased to 3%.

In March 1999, stamp duty increased to 2.5% on properties between £250,000 and £500,000. Over £500,000 increased to 3.5%.

In March 2000, stamp duty increased to 3% on properties between £250,000 and £500,000. Over £500,000 increased to 4%.

multimillionaire

Shocking stuff!

Stamp Duty is such a killer....

multimillionaire

Was there not a BIG pressure campaign push/drive taking place in the chancellor's direction to have this looked at or changed ?

Surely a measured stamp duty approach would be fairer....?

eg,

1 % duty upto 125000
2 % duty from 125001 - 250000
3 % duty from 250001 - 500000
4 % duty from 500001+ onwards

Such an approach would prevent property sale prices from bunching up in groups as they currently tend to do so and spread out a little more realistically - would you perhaps agree ?

Or am I going a little mad !? :mad:

scope

multimillionaire wrote:

Surely a measured stamp duty approach would be fairer....?

eg,

1 % duty upto 125000
2 % duty from 125001 - 250000
3 % duty from 250001 - 500000
4 % duty from 500001+ onwards

Or am I going a little mad !? :mad:

Yes you are going mad.. The Stamp duty is one of the most unfair taxes as it is, why would I want to pay 2%, £5000 when I buy a house worth £250.000? £5000 for NOTHING.. The £2500 I would have to pay today is bad enough. They should all be the same percentage, after all somebody buying a £250.000 house will pay double of that of a £125.000 house anyway, no need to make it 4x.

I say drop this stupid TAX.

peterg1965

Dont raise your hopes about any change in the Stamp Duty thresholds. This theiving Government will want to extract every possible penny of your hard earned money. Stamp Duty was originally levied on more expensive houses in years gone by, with average house prices now over £200K more people than ever before are caught up in having to pay this grossly unfaie and unjust tax, I agree with Scope. It is a barrier to moving house for many people.

Gordon Brown will claim it is a lever to control housing market activity, that is a lie, it is just another stealth tax.

peterg1965

Dont raise your hopes about any change in the Stamp Duty thresholds. This theiving Government will want to extract every possible penny of your hard earned money. Stamp Duty was originally levied on more expensive houses in years gone by, with average house prices now over £200K more people than ever before are caught up in having to pay this grossly unfair and unjust tax, I agree with Scope. It is a barrier to moving house for many people.

Gordon Brown will claim it is a lever to control housing market activity, that is a lie, it is just another stealth tax.

multimillionaire

I agree its a stealth tax, and its here to stay no doubt.

Correction.....Perhaps it should be more like the following so it does have an effect on the bunching up of house prices ?

eg,
0 % duty upto 125000
1 % duty from 125001 - 250000
1.5 % duty from 250001 - 500000
2.5 % duty from 500001+ onwards

Just an idea being tossed up in the air !!

DavidHM

Yes you are going mad.. The Stamp duty is one of the most unfair taxes as it is, why would I want to pay 2%, £5000 when I buy a house worth £250.000? £5000 for NOTHING.. The £2500 I would have to pay today is bad enough. They should all be the same percentage, after all somebody buying a £250.000 house will pay double of that of a £125.000 house anyway, no need to make it 4x

Sorry, I disagree. At present, on a £125k house, you'd pay er... nothing. So you pay infinity times more on a £250k house (£2,500), and three times as much again on a £250,001 house (£7,500.03).

Here, the idea would be that you'd pay £1,250 on a £125k house, £3,750 on a £250k house and £3,750.03 on a £250k house.

However the disadvantage is that at the moment, as house prices currently are, average homes get taxed at 1% and not 3% and there is less liquidity in expensive homes so that investors have substantial penalties if they sell expensive properties.

Therefore if there were a change to make it fairer, it would probably stimulate the top of the market further and at the same time the Daily Mail would launch an attack based on taxes, property prices and hard-working families... It's too complicated an idea to be really popular and too easy to attack in the middle ground for it to be brought in IMO.