Stamp Duty - The Tory's plan

CYBERCIDERSAVER

But aren't the tories blaming Labour for the current credit crunch (which actually started in the USA) and high house prices are a factor in this???

So no stamp duty pushes prices even higher??!!!!

Surely it just makes it more likely people will use property as an investment keeping people in BTLs and meaning the "affordable" housing shortage will continue for a while longer before a larger "correction" than would otherwise be the case.

That's how I read it anyway

nollag2006

The elimination of stamp duty on starter homes, whether based on value or on square footage, would just result in prices rising at a commensurate level, such that the vendor, rather than the taxpayer, would end up winning.

The net effect on the gross purchase price would be negligible.

This was the experience in the Republic of Ireland a few years ago. When the government there raised the level at which first time buyers were exempt from stamp duty, prices rose within days to eliminate the benefit.

Turnbull2000

As usual, the BBC 'Have you say' pages seem to provide a frightening insight into the mentality of the general public. The comments that usually get recommended the most are typically reactionary, short-sighted and ill-thought drivel. Anyone disagree?

Anyway, I mention all this as most comments appear supportive of abolishing stamp-duty in order to 'assist' first-time-buyers. And the thought of inheritance tax being abolished too is quite unnerving.

http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=7517&&edition=1&ttl=20071001131425

fistfullofdollars

Turnbull2000 wrote: »

As usual, the BBC 'Have you say' pages seem to provide a frightening insight into the mentality of the general public. The comments that usually get recommended the most are typically reactionary, short-sighted and ill-thought drivel. Anyone disagree?

Anyway, I mention all this as most comments appear supportive of abolishing stamp-duty in order to 'assist' first-time-buyers. And the thought of inheritance tax being abolished too is quite unnerving.

I so agree! BBC should close it down IMO. If that is the view of the every day person, no wonder the country is as bad as the HYS lot says it is! I think the whole thing has been hi-jacked by the BNP some days.

RE the Tories...... Hmmmm, I agree with what people have said in previous posts. I like the way the state its a 'fully costed' idea. They mean they have covered their backsides after the last gerneral election cockup of saying they wanted to cut £3 billion off tax bills (!?!?).

IMO its a fickle policy. It appeals to the idiots on the BBCs HYS pages.

If I was PM. I'd change the system so you'd only pay SD when selling a house, not buying one.

dougs

whereas the abolishing of the ill-thought out HIPs can only be a good thing surely.

WTF?_2

nollag2006 wrote: »

The elimination of stamp duty on starter homes, whether based on value or on square footage, would just result in prices rising at a commensurate level, such that the vendor, rather than the taxpayer, would end up winning.

The net effect on the gross purchase price would be negligible.

This was the experience in the Republic of Ireland a few years ago. When the government there raised the level at which first time buyers were exempt from stamp duty, prices rose within days to eliminate the benefit.

They abolished stamp duty on houses below a certain size a few months back too - the result was that asking prices immediately went up as sellers sought to pocket the stamp duty for themselves.

Not the smartest of moves in a falling market :rolleyes: but then the levels of greed and stupidity seen in the Irish housing bubble even manage to dwarf those seen in the UK - no mean feat.


Right now, vested interests in Ireland are calling for yet more stamp duty breaks to rescue the plummeting housing market. Once you start cutting these chancers slack, they just ask for more and more. We see the same effect in the financial markets as the US stock market demands more and more interest rate cuts from the Federal reserve.

Guy_Montag

Turnbull2000 wrote: »

As usual, the BBC 'Have you say' pages seem to provide a frightening insight into the mentality of the general public. The comments that usually get recommended the most are typically reactionary, short-sighted and ill-thought drivel. Anyone disagree?

Anyway, I mention all this as most comments appear supportive of abolishing stamp-duty in order to 'assist' first-time-buyers. And the thought of inheritance tax being abolished too is quite unnerving.

Put a link - I can't find it. :rolleyes:

irnbru_2

dougs wrote: »

whereas the abolishing of the ill-thought out HIPs can only be a good thing surely.

What do they propose to replace it with?

Generali

Guy_Montag wrote: »

Put a link - I can't find it. :rolleyes:

Stamp abolished < £250k:

http://news.bbc.co.uk/1/hi/uk_politics/7020389.stm

HYS:

http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=7517&&edition=1&ttl=20071001143126

Enjoy!

Gorgeous_George

What is Stamp Duty supposed to be for?

If the money needs to be raised it should be added to Council Tax and based on the area of the house and gardens rather than price. It should be payable by every home, owner-occupied, tenanted or empty, and should be a fixed price per square foot of living accommodation plus a fixed price per square foot of garden. Apply it on that basis to all land including agricultural.

Better still, scrap it and stop buying bombs. Let the UK retract its position as a major World power and accept a new position commensurate with its size.

GG