Boris slashing Stamp Duty

tizzwoz1981

About a week ago, Boris Johnson suggested if he were prime minister, he would look at slashing stamp duty. Im looking to buy a property in the next month or 2. Im wondering, if i buy a property, pay the full, current stamp duty tax, only for Boris to cut the rates a few months later, would there be any way of me getting the difference back as a refund? At the current rate, I am looking at paying around £40k in stamp duty for my new house. If Boris comes in and the rate of stamp duty reduced that figure to say £20k, id be rather annoyed having just payed £40k a few weeks earlier. Must I hold fire until Boris clarifies the situation later this year, or would I be entitled to a refund on the difference once the new stamp duty rules were introduced? Is there a grace period given to refund those who recently paid stamp duty. If not, surely the housing market will grind to a halt for the next few months, waiting to see what Boris has planned?

davidmcn

tizzwoz1981 wrote: »

Im wondering, if i buy a property, pay the full, current stamp duty tax, only for Boris to cut the rates a few months later, would there be any way of me getting the difference back as a refund?

No, in the same way that they can't demand you pay more if the rates went up a few months later.

Must I hold fire until Boris clarifies the situation later this year

I wouldn't hold fire or my breath for Boris to enact anything he's suggesting during his leadership campaign.

would I be entitled to a refund on the difference once the new stamp duty rules were introduced?

No.

Is there a grace period given to refund those who recently paid stamp duty.

No.

If not, surely the housing market will grind to a halt for the next few months, waiting to see what Boris has planned?

There might be other reasons for it to grind to a halt, but I doubt this is one.

The closest thing to a grace period is that when stamp duty rates are changed, there are transitional arrangements for those who are already in a contract - usually so they can elect to pay under either the old or the new rules.

[Deleted User]

Remember Boris may not even get in. I think its rather doubtful, even if he become PM that all the things he has suggested he'd like to do, he will be able to do (will be able to afford them). These things are normally announced in a budget. You could be waiting a long time for the next budget. Its unlikely he'd be PM one day and announce such changes the next.

Plus a general 'slash stamp duty' proposal is very vague. You don't know if it would affect you.

verybigchris

Using your example: if your potential stamp duty liability was to fall by £20k, then so would the potential stamp duty liability of any rival bidders, giving them an extra £20k to spend on the purchase price, pushing the price up and leaving you in the same net position as you where before the tax cut, with most of the benefit of any tax saving going to the vendor.

Obviously this is a huge over-simplification, but it's one of several reasons why I wouldn't let it affect your decision to buy.

Crashy_Time

verybigchris wrote: »

Using your example: if your potential stamp duty liability was to fall by £20k, then so would the potential stamp duty liability of any rival bidders, giving them an extra £20k to spend on the purchase price, pushing the price up and leaving you in the same net position as you where before the tax cut, with most of the benefit of any tax saving going to the vendor.

Obviously this is a huge over-simplification, but it's one of several reasons why I wouldn't let it affect your decision to buy.

Depends if the rival bidders can keep their jobs after Brexit. Boris knows that loads of people are worried about their house plummeting in value after a No Deal Brexit,and loads of people are in Wait and See mode about buying, this is just tossing out a bone to keep people believing that prices can stay high......all part of the great Panto Show.....his priorities are personal ambition and party though, not Joe Soap`s house value.

diggingdude

This is one of your two posts. I suggest you already know the answer to your rather hopeful question

jimmyjammy001

Like other people have said, the house will just go up by 20k as the next person will have saved 20k and the vendor gains even more on their house

HampshireH

sometimes I read posts on herr and struggle to work out if post are legit.

Asking if you would get a backdated payment if a new policy were introduced is like asking for a refund in the shop if something you bought goes down in price a month or two down the line.

Boris is full of hot air. Stamp duty costs to go down (expensive - especially if your house is worth enough to have a 40k bill), 20 thousand new police (expensive), raising tax threshold (expensive), reducing NI contributions (expensive)..........can you see where I am going with this? Lovely to hear.......a little impractical in reality.

unforeseen

Folks, reality check please.

These are politicians. The will promise whatever you want to get them the job but then have a severe case of amnesia once they have their feet under the table.

Take their promises with a pinch of salt.

AdrianC

tizzwoz1981 wrote: »

About a week ago, Boris Johnson suggested if he were prime minister, he would look at slashing stamp duty.

Boris has said a lot of things that he almost certainly won't actually do if/when he becomes PM. Even assuming he stays PM for more than a nominal amount of time. Even the things the PM can do, rather than being the chancellor's responsibility. Who would be Boris' chancellor?

Im looking to buy a property in the next month or 2. Im wondering, if i buy a property, pay the full, current stamp duty tax, only for Boris to cut the rates a few months later, would there be any way of me getting the difference back as a refund?

No. Any more than an increase would be claimable. The relevant rate is that in force on the day of completion.

At the current rate, I am looking at paying around £40k in stamp duty for my new house.

So damn near million quid property...?

If not, surely the housing market will grind to a halt for the next few months, waiting to see what Boris has planned?

And, yes, you've just flagged why politicians saying things like that is a stupid thing to do.

Hold the front page... Boris says/does stupid thing.

Davesnave

Do you remember those fat envelopes that used to arrive full of exiting news that you'd already been 'specially selected' to enter a prize draw if you just review the offer enclosed and send back your lucky number details before the closing date?

Well, you've been 'specially [STRIKE]targeted[/STRIKE] selected' and you're through to the next round.

Exciting, isn't it?