Stamp duty

[Justin Passing]

Why in principle should it not be done away with and replaced with VAT?

 

[pete01]

Why not just done away with and let people keep their own money.

 

[motorbiking]

Why in principle should it not be done away with and replaced with VAT?

That would be quite expensive.

 

[diy_fun_uk]

There is talk of replacing it with an annual house tax. That will force the poor old folk out of the homes they’ve saved up and bought with their life’s work.

I suspect over coming years/decades we'll see more pernicious taxes on property and vehicles.

Whenever I read about old folk and property I think 'what about those who want to stay put?' As you say, in a property they most likely saved to buy followed by years of mortgage payments and investment in the property.

Many want to downsize, some don't. The latter shouldn't be penalised.

 

[noseall]

There is talk of replacing it with an annual house tax. That will force the poor old folk out of the homes they’ve saved up and bought with their life’s work.

Nonsense. Release a tiny bit equity and live in blissful ignorance.

 

[Mottie]

0% for those houses costing up to £300k

None of those round here.

 

[King Billy]

That's only part of the story.

Hannah's point is that stamp duty disincentivises (typically, older folk rattling around in houses that are now too large for them) from selling up, and people from buying those houses.

How so? The stamp duty is purley a buyers responsibility, not the sellers.
Surely the seller may probably buy another property, but will it meet the stamp duty threshold?
Bering in mind it it does, stamp duty above £300k to £500K is only payable on the difference.

And, as housing is not in unlimited supply, this top-end choke affects the entire market.

I'm not so sure the financials causes the choke effect.
Anyone who has to either assist an old person selling their house , and making it presentable, plus disposing of decades os personal effects, is a real ballache.
I can fully understand an old person not having the motivation to start such a process.

'scuse any typos, etc. I've had a gruelling day (manual work) and I'm beat. I'm relaxing with a couple of cold beers before I shower and change.

 

[King Billy]

There is talk of replacing it with an annual house tax. That will force the poor old folk out of the homes they’ve saved up and bought with their life’s work.

Source?

 

[King Billy]

Why in principle should it not be done away with and replaced with VAT?

Stamp duty is only paid by house buyers (above £300k and some investors.}
Thus it was designed to target the wealthy.
VAT targets everyone, noT just the wealthy.

 

[King Billy]

I suspect over coming years/decades we'll see more pernicious taxes on property and vehicles.

Targeting polluting vehicles and encouraging greener vehicles? Yeah why not.
Property wise, why shouldn't high end properties be targetted?

Whenever I read about old folk and property I think 'what about those who want to stay put?' As you say, in a property they most likely saved to buy followed by years of mortgage payments and investment in the property.
Many want to downsize, some don't. The latter shouldn't be penalised.

I agree. Wait a few years and there's no problem, or it's an inheritance tax.

 

[King Billy]

None of those round here.

No stamp duty then.
Wouldn't it be nice to have a map of where the stamp duty is levied and therefore raised.
The data exists. So why not?

There is no physical, geographic map of where stamp duty rates vary within England or Northern Ireland because the rates are set nationally. However, there are maps that illustrate where the tax is most actively raised based on property values (with London and the South East generating the highest volume).

There is a large format map:

Mapping stamp duty and the housing benefit bill - Centre for Cities

Devolving residential property taxes would help tackle the housing crisis where it is most acute.

www.centreforcities.org

 

[noseall]

None of those round here.

That’s a shame.

 

[Deluks]

Nonsense. Release a tiny bit equity and live in blissful ignorance.

The government already get a slice when you die, you are saying they should get it while you are still alive?

 

[Justin Passing]

Why not just done away with and let people keep their own money.

Because Rachel needs the money

That would be quite expensive.

It doesn't have to be 20%.


What's everyone saying 300k for? it starts at 125,001, steps up at 250001 and 925001 and 1500001.
Only first time buyers get relief up to 300.

Hannah's 17% is only for second homes over 1.5m.

11.6bn was collected in 23-24, of which 8.6bn on residential. Though AI is contradicting itself.

I still think HMG should have a way of making money from international trading. There would have to be separations, of regulatory authorities, policy and information.
There would be a Talent problem, but AI is coming to help there.
It would have to prepare for when/if it made a loss, so it would have to build a reserve to avoid taxpayers baling it out when that occurred. (2008).
Some countries DO do things like this, notably Norway, which has a Sovereign Wealth fund holding about 1.7trillion. It owns half of Oxford Street. Madness, shouldn't be allowed!

Barclays , HSBC floors each earn about 10bn per annum. US floors about treble that.

Most of the profit is pulled in from the USA, because that's where most money is made. Import some of their growth!

There's a 0.5% stamp duty when buying UK shares, which brings in about 3 bn. p.a
That's 3bn of tax on investing in the UK compared with say the US. More madness

 

[Mottie]

That’s a shame.

It is. A starter home is around £450k. Dunno about how it is round your way but our son, like many of our friends children, can’t afford a house in the same area as there parents. Our daughter is different though - we couldn’t have afforded a house in her area when we were recently married. We’re there now, keeping the cat company while they’re on holiday and we’re getting their garden and allotment in order - we’re bloody knackered!