Stamp Duty - Budget?

fraserm_2

Hi all,

Do you think Gordon will do something with the stamp duty rates / cut-off points in the budget next month? I`m currently holding out for it before dropping the price of my house that is for sale!

Good article on BBC Today: http://news.bbc.co.uk/1/hi/scotland/6417661.stm

"But the bank argued that if those thresholds had gone up in line with house price inflation since 1997, the £250,000 limit would now be £680,000 and the £500,000 barrier would be £1.36m."

Fingers crossed!

Fraser

rebeccaj

I can't see him doing it TBH as it's a very nice (and stealthy) little earner for this grabbitall chancellor :mad:

theGrinch

as there is unlikely to be a general election in 2007, then NO. if anything he is likely to levy 5% on sales over £1m. stamp duty should be reduced. its a disgrace

Robert_Sterling

When labour was in power before the higher rate of income tax was 60%.
The conservatives reduced it to 40%.
In order to get into power again labour had to promise not to raise Income Tax Rates.
They also promised not to cut public expenditure.
Hence they had to increase other taxes.
e.g. Stamp Duty, National Insurance, Inheritance Tax, indirectly Council Tax etc.

rebeccaj

Robert_Sterling wrote:

Hence they had to increase other taxes.
e.g. Stamp Duty, National Insurance, Inheritance Tax, indirectly Council Tax etc.

and didn't they just, with avengeance! Over 150 stealth taxes brought in to make up the shortfalls they've created. Interesting reading on this page

but as this is the House Buying forum and this is going off topic I'll shut up now

epz_2

i dont get peoples problem with stamp duty, it they remove it house prices just go up by that ammount, unless you are selling up to downsize/retire it just means you pay the same with some of the price going to the government.

think of it like this, would you rather pay more income tax.

mystic_trev

rebeccaj wrote:

and didn't they just, with avengeance! Over 150 stealth taxes brought in to make up the shortfalls they've created. Interesting reading on this page

but as this is the House Buying forum and this is going off topic I'll shut up now

Yes Taxes are now at a 20 year high, and near breaking point according to the IMF. From yesterdays Torygraph.

"Gordon Brown has lifted the tax burden to breaking point and must slash public spending or risk plunging Britain's national accounts dangerously into the red, the International Monetary Fund warned yesterday"

So no don't expect any Tax breaks except a small rise in IHT limit.

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/03/06/ntax06.xml

fraserm_2

epz: Its not a question of removing it - although I dont like to pay it, we have to pay it.

Its more the fact that the cut-off points have not been raised in line with house inflation over the past 10 years, and also the fact that the 250k cut-off point is not fair - in that if you jump from a price of £249999 to £250001, you are paying 3% of the WHOLE price in tax, and not just the £1 over the cut-off.

The problem comes whereby my house was valued 6 months ago at £249,950.. It has now been valued as £260,000. But because of the current stamp duty rules, it means I will never be able to sell at £260k, and will only ever realise £250k on it. So due to stamp duty I am not realising the full value of my property currently.

Thanks
Fraser

courtjester

Robert_Sterling wrote:

Hence they had to increase other taxes.
e.g. Stamp Duty, ..., Inheritance Tax, ... etc.

Actually, the key is that they didn't *increase* the rates of stamp duty and inheritance tax. The rise in property values has brought billions in 'windfall' tax to the government which they have kept as quiet as possible about - all they have done is resist increasing the allowances (the inheritance tax threshold was increased slightly as a gesture to the rising objections, but not to any consequence). So they can correctly claim that they have NOT raised these taxes.

Now that they (and future) governments will clearly rely on these fantastically profitable (but blameless!) sources of tax revenue, there is little if any chance that the rates will be substantially removed. Certainly no chance at all that the 500k threshold would be increased as all the parties seem to be set on moving more tax on to the highest earners.