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What Is The Tories Plan On Stamp Duty?

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Guest absolutezero

Has anybody heard any concrete plans or rumours on the Government's plan towards stamp duty? Surely there will be some incentive for first time buyers?

Sorry to break this to you.

They don't have a plan. Of any kind.

Since the Tories failed to win the election it's all descended into arguing and compromise.

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why is there a stamp duty at all?

if its to cover LR, then it should be a fixed fee, for all transactions.

otherwise, its just another revenue generator.

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http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm

Residential land or property SDLT rates and thresholds

Purchase price/lease premium or transfer value SDLT rate SDLT rate for

first-time buyers

Up to £125,000 Zero Zero

Over £125,000 to £250,000 1% Zero

Over £250,000 to £500,000 3% 3%

Over £500,000 4% 4%

First time buyers

The first time buyer’s £250,000 threshold applies from 25 March 2010 up to 24 March 2012 inclusive.

So Zero rate up to 250,000 for FTBs. I would suggest if you are buying a house worth £250,000+ then you don't need any help.

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You're learning.

course...why lie about the nature of the tax?

like saying NI goes to an insurance plan.

or road tax goes to roads.

course, its an open lie everyone knows this, yet cuts are such a distasteful thing they lie about those too.

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I expect the 0% for FTBs to disappear alas.

Hello,

I thought this might happen too. It looks like the government Stamp Duty levels printed above are the old labour levels.

Has anyone heard if the Conservatives are going to continue this or not ? Or is this something else that we will only find out about on the 23rd ?

It would be very handy for me if they did extend it.

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So Zero rate up to 250,000 for FTBs. I would suggest if you are buying a house worth £250,000+ then you don't need any help.

Or live in the south.

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Has anybody heard any concrete plans or rumours on the Government's plan towards stamp duty? Surely there will be some incentive for first time buyers?

...to build a bubble ..don't thinks so ....more likely to let prices adjust to realistic levels and this will help first time buyers.... :rolleyes:

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As stated above, SDLT is just a revenue generator and has for the most part been a pretty easy one to milk for the government, especially over a decade of unprecedented growth in property values.

The rates of SDLT payable on purchases remain as they were under the previous government for now, and whilst there is talk of changes, the new government have got a pretty packed agenda so it may be some time before any changes are made - current SDLT rate tables can be viewed here.

Most of the feedback I've seen suggests that the FTB holiday is of limited value to a limited demographic. What is less limited however is the existing and increasing SDLT bill for all other buyers at 3%, 4% and (potentially) soon to be 5%.

There's also been an increase in the rumblings going around about the government’s desire to bring an end to SDLT avoidance schemes, and you can understand them wanting to nip this in the bud before they lose huge revenues as this practice becomes more commonplace.

I’ll certainly be watching this area with interest as Counsel on both sides play cat & mouse with the ever more complex legislation that is created to keep the indirect taxes flowing, although I suspect (as has always been the case) that as one door closes another will click ajar.

For the time being, and probably very soon after any changes that do come in have been implemented, the smart property purchasers will continue to avoid paying stamp duty on property purchases in the UK through the legal methods currently available, just as the previous government’s own party did with the £210,000 SDLT bill that was deftly avoided in the purchase of their London HQ building in Millbank (you can read the details of this in this article by The Independent).

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All taxes are going to go up... although it would not surprise me that the 0% for FTBs below 250K goes and the CGT is not as we all hope for... double whammy for HPCers.

The gov could grow a conscience and do both. Afterall, the majority of housing wealth is held by people retiring over the next 10 years, waiting to be frittered away on new BMWs and round-the-world cruises. Shackling the younger generations with increasing mortgage debt is not conducive for tax raising in the future (and taxes will have to rise as we cannot cut quick enough). Keeping FTBers locked out of the market whilst house prices crash is one of the most prudent things this gov could do, as it means that taxes can be increased on us when prices are affordable again. YOungsters are still screwed, but at least only once on tax and not additionally on high housing costs. I am also looking for regulators to be leaned on to introduce mortgage lending caps to aid this.

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