BTL/Second Home Stamp Duty

westv

Just wondering really why the 3% charge was set at £40k rather than closer to £125k. Just in order to raise more tax or another reason?

cells

westv wrote: »

Just wondering really why the 3% charge was set at £40k rather than closer to £125k. Just in order to raise more tax or another reason?

below £40k you dont have to declare for stamp duty so they just kept that for everyone rather than complicate it with two sets of rules

Bluebirdman_of_Alcathays

westv wrote: »

Just wondering really why the 3% charge was set at £40k rather than closer to £125k. Just in order to raise more tax or another reason?

It isn't a nil rate band like the 125k on "normal" purchases. It's simply a minimum before its charged. IE, you pay 126k on a normal purchase, you only pay stamp duty on 1k. You pay 41k on a second property, you pay stamp duty on all 41k.


You can't really compare the two limits, as they do different things.


The 40k was (imho) so small transactions like the £1 sale in Glasgow doesn't get held up by red tape.

PasturesNew

If they'd set it at £125k all the rich bugg4hs would be filling their boots with perfect FTB houses up to the £125k limit .... and it'd cause a sudden rush at everything vaguely 'affordable' so the few people likely to be able to stretch to their first little home before too long would be killed in the rush, swept aside like worthless peasants by those who "obviously worked harder"

It'd create an enormous bubble of excitement and greed among those who already had a home.

Conrad

westv wrote: »

Just in order to raise more tax or another reason?

The Gov't owes £1.6 trillion.


You (we) demand ever more spending - on flood defences, potholes, guide dogs, more midwifes, services for war 'hero's', more on foster kids, the list is endless. I bet you pick up the paper and tut tut when you read there isn't enough being spent on school meals, care for the elderly, cancer, local hospice, carers wages, policing dangerous dogs, on people sleeping rough, on Syrian orphans, etc etc etc. Well that money has to come from somewhere.


If you want all these entitlements and services and want the debt reduced, tax is probably going to rise.