Stamp Duty

vorlon24 · 17-03-2005, 15:50

What do you think of the changes to the Stamp Duty in this year's budget?

Do you think it went far enough, or do you think they should have been a bit more radical with the change.

For example, paying tax on the difference between the zero rate limit and the actual purchase price (or the higher amount on the difference again).

I was listening to Radio2 yesterday afternoon (I must be getting old!) when a chap came on saying that it was a silly tax etc etc.

I don't agree with abolishing it completely, but I think it should be made more user friendly.

Just think: at the moment if someone buys a house for £250,000, they will pay £2,500 in Stamp Duty.

If the price is £250,001 they would pay £7,500.03, a difference of £5,000.

Is that fair?

Acrylic-bob · 17-03-2005, 16:40

All it will do is raise house prices even further out of the reach of first time buyers. The rapacious "buy-to-let" set will see to that.

MichiganRed · 17-03-2005, 19:07

Quote:

Originally Posted by vorlon24

Is that fair?

If your government is anything like ours, "fair" and "government policies" are mutually exclusive terms.

Acrylic-bob · 17-03-2005, 19:14

You see, it's more than just the language which unites us!

West Ender · 17-03-2005, 22:12

Where I live, a 2-up 2-down terraced house is euphamistically referred to as a cottage (there must be all of 20 of them) and they sell at around the £200K mark. The average house price is £300K. I have 3 grown up children, all brought up in this village, and none of them can afford to buy a house here. If I didn't already live here, I wouldn't be able to move here either. The extension of the Stamp Duty exemption band isn't going to make a whole heap of difference in this neck of the woods.

The only fair tax is Income Tax. Stamp Duty is a tax on purchasing property which only serves to exclude the less wealthy from climbing the property ladder while the under-taxed high earners push up the basic property prices. If we must have it at all, it should start, at least, at £500K.

pendy · 18-03-2005, 14:10

Agree that Stamp Duty is a ludicrous tax, but what about the new Government proposal to slap a 40% tax on any profit you make on selling your house? I know we buy houses to live in, not just as an investment, but how is anyone going to trade up on that basis? I suppose Gordon Brown has to get the money for his friendly budget from somewhere - just wait, if they get in again ......

Acrylic-bob · 18-03-2005, 14:33

You were all warned when you voted labour in the first time, that leopards do not change their spots. Tax and spend has always been the policy of the Labour Party. If they are elected to a third term in Government then they will tax us all, till the pips squeak!

The only sensible way to vote is to write ABSTAIN on your ballot paper.

vorlon24 · 18-03-2005, 14:45

They charge this form of capital gains tax on the continent.

I don't see it as too much of a problem - it would at least lend a little stability to the housing market, and may help reduce them somewhat. People would think twice about moving. If they were to trade up due to lack of space then it may be a problem, but people who move just for the sake of it may instead be tempted to remain where they are.

vorlon24 · 18-03-2005, 14:46

Besides, I am sure that any legislation on this will be full of loopholes to exploit...