Stamp Duty - New Budget

ginger_nuts

If the seller paid the stamp duty instead off the buyer ,FTB wouldnt have to pay .Sellers may ask more for a house to compensate but they may not get it .Sellers would be reluctant to let the price go just above a SD level as the seller would pay more .
Also all the private landlords with 2,3,4 or more house would have to pay when they sell up

fivemice

epz wrote: »

if you want to !!!!! about the budget loke at the removal of the 10p basic rate of tax meaning junkies and slappers who get up the duff get more benifits

I didn't see any benefit rises in the budget.
I wish people wouldn't talk about benefits in such a prejudiced way - I am so glad we have a benefits system (and I speak as someone who has never been entitled to receive them) and I think the fact that someone is a drug user or gets pregnant is irrelevant. I'm glad we have freedom of choice. Much rather this than the sorts of poverty that I've heard of the in the USA.

seven-day-weekend

epz wrote: »

stamp duty means nothing, think of houses like an item for sale on ebay, the listing fee or tax makes no difference to what the item sells for, that is determined by the free market (1). the difference is if the stamp duty isnt levied then the tax take will have to be made up elsewhere such as council tax or income tax.

now given how grossly unfair the tax system is to lower incomes already its hardly resonable to tax them more to subsidies the rich who already own expensive properyties and are selling them.

if you want to !!!!! about the budget loke at the removal of the 10p basic rate of tax meaning junkies and slappers who get up the duff get more benifits and people earning over 35k gets a tax break but anyone actually working but not earning over 18k gets a tax rises. in my case its like £100 a month !!!!!!, this from the government that gave us tuition fees and a billion pound tent, dont get me wrong i am way right wing but the torries are even more geared to the rich so it makes you wonder who you can actually vote for that woulnt screw you even more.

if you want to see house prices fall make pensions means tested, anyone with over a 100k house paid for needs to either sell it and downsize/ equity release or live off their own savings. i dont see why i should subsidise the rich childrens inheritance.



(1) or in the housing markets case, irrisponcable bank lending and massive hype

My house is a Victorian Terrace worth £150k at the most.

What exactly am I supposed to downsize to and how long do you think the equity will last before I'm on benefits? (seeing as I am not entitled to a pension, in your view).

movieman

From what I remember, stamp duty was around a billion pounds a year when NuLab were first elected in 1997 and is now more like ten billion pounds a year. That's a sizable fraction of the government's tax income, and Brown is hardly likely to want to lose it.

The real problem is not that stamp duty is high, but that house prices are far too high. If prices had only increased along with wage inflation since 1997, then few people would be complaining about stamp duty.

mchu6am4

I blame the Lab gov for the HIGH property prices - they've benifitted hugely and I don't see anyone (from government) complaining about them. I'm no economist or accountant by trade - I'm a poorly paid engineer and the only change I see in the past decade is Labour Gov = High Property Prices + High Stealth Taxes + Student Fees + Iraq Fees + and the list goes on.....

High property prices has NOT benifitted homeowners who own ONE property as if they sell (at inflated prices) then they need to buy somewhere else (at inflated prices) live in (give it with one hand and take it away with the other) - so it's all relative, the benificiaries are the banks and the government (be it Central or Local).

Personally, I cannot stand the sight this corrupt and filthy government (although I thought the Tories were bad in the 90s, but relatively speaking they were alot better than the whiter than white Blair's Liars!)

The word 'politics' derives from the word 'poly' meaning 'many' and 'tics' meaning blood sucking parasites!


Ash

Poundcounter

Is 1% really such a big deal? At the threshold level of £125,000 it's an extra £1,250, about the amount the property price will inflate each month! the impact of Stamp duty is more significant at the £250,000 threshold where it rises from 1% to 3%, adding £5,000 to the property price. Because the tax is retrospective (it applies to the whole amount, not just the amount above the threshold) it can create a distortion in the market at this level. You wouldn't expect to see a sale go through at £260,000 for example (since the extra £10,000 would effectively be taxed at 53%), although you might expect a £250,000 sale to be accompanied by a private cash transfer!

mchu6am4

Poundcounter wrote: »

Is 1% really such a big deal? At the threshold level of £125,000 it's an extra £1,250, about the amount the property price will inflate each month! the impact of Stamp duty is more significant at the £250,000 threshold where it rises from 1% to 3%, adding £5,000 to the property price. Because the tax is retrospective (it applies to the whole amount, not just the amount above the threshold) it can create a distortion in the market at this level. You wouldn't expect to see a sale go through at £260,000 for example (since the extra £10,000 would effectively be taxed at 53%), although you might expect a £250,000 sale to be accompanied by a private cash transfer!

What do you mean by a private cash transfer? Is this legal and how is it possible? The only reason I'm asking is I know a FTB buyer who is buying at £136k with £30k deposit - However they would love to buy it at £125k and pay the extra as 'private cash transfer' if I correctly understand what this means.

Gorgeous_George

You can avoid paying Stamp Duty legally and quite simply.

Renting is the answer.



GG

epz_2

Gorgeous_George wrote: »

I'd love to see your tax return. To be out of pocket by £100 per month due to the removal of the 10p tax band is impossible. Around £20 per month would be worse case and that's before the benefit of the reduction from 22% to 20% for basic rate tax payers.

As an aside, why is it fair for people to pay into a pension and not receive the benefits?



GG

im just going by one of thouse onlie tax calculator things somone posted, im meant to be getting set up as a limited company but currantly pay employers nic etc grr. as to paying tax for no benifits well i will have to, anybody who seriously belives there will be a worthwhile pension in 40-50 years is mental so why should i pay through the nose for someone who is retired now with a big asset which they could realise and happily live off.

Gorgeous_George

The 'big' asset is their home that they have bought using money that they have earned. Their pension is something else that they have earned. Why shouldn't they enjoy it?

I'd support a zero IHT allowance.



GG