Wurzel Of Highbridge Posted October 21, 2013 Share Posted October 21, 2013 As per title really, I fully expect the government to announce that nobody has to pay SDLT on property under £600k, it will be announced in the March 2014 budget and timed to cause a spring bounce. It will be announced as 'A measure to help hard working families'. It will remove another barrier to entry and help push up prince in spring by another few percent. Quote Link to comment Share on other sites More sharing options...
slacker Posted October 21, 2013 Share Posted October 21, 2013 I fully expect the government to announce that nobody has to pay SDLT on property under £600k, it will be announced in the March 2014 budget and timed to cause a spring bounce. Along with 5% off basic rate and scrapping of green taxes. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted October 21, 2013 Author Share Posted October 21, 2013 I am keeping my ears to the ground on how they propose to pay for it, but it's bound to be something like cutting benefits for the under 25's by 20% or alike. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 21, 2013 Share Posted October 21, 2013 I am keeping my ears to the ground on how they propose to pay for it, but it's bound to be something like cutting benefits for the under 25's by 20% or alike. Dangerous. I would expect there are a lot of young angry people right now. I know there is a lot of old angry people Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 21, 2013 Share Posted October 21, 2013 I am keeping my ears to the ground on how they propose to pay for it, but it's bound to be something like cutting benefits for the under 25's by 20% or alike. Can't see them cutting benefits in the run up to a GE. Afterwards is a different matter. Plenty of things Osbo can sell off cheap instead. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 21, 2013 Share Posted October 21, 2013 Can't see them cutting benefits in the run up to a GE. Afterwards is a different matter. Plenty of things Osbo can sell off cheap instead. Osborne wont last till the next election. House asking prices in London going mental, propping up the banks, fighting the banks battles in court, crazy schemes to support bankers, money printing to support bankers, no pay rises for people, fuel prices going through the roof, food prices going through the roof.... You can see mass protests coming very soon. Quote Link to comment Share on other sites More sharing options...
Billy soy Posted October 21, 2013 Share Posted October 21, 2013 Osborne wont last till the next election. House asking prices in London going mental, propping up the banks, fighting the banks battles in court, crazy schemes to support bankers, money printing to support bankers, no pay rises for people, fuel prices going through the roof, food prices going through the roof.... You can see mass protests coming very soon. Fingers crossed. Though the right wing media in this country is doing a very good job of deflecting the criticism. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 21, 2013 Share Posted October 21, 2013 Osborne wont last till the next election. House asking prices in London going mental, propping up the banks, fighting the banks battles in court, crazy schemes to support bankers, money printing to support bankers, no pay rises for people, fuel prices going through the roof, food prices going through the roof.... You can see mass protests coming very soon. The global economy tanking. World trade at a five year low. US bank profits sharply lower even with unlimited QE. It's going to be touch and go whether he and Carney can carry the UK economy all the way to the GE. Quote Link to comment Share on other sites More sharing options...
Gigantic Purple Slug Posted October 21, 2013 Share Posted October 21, 2013 Are there any substantial facts behind this or is it just speculation ? Anyway, my speculation in response to the speculation : i) March will be too late for the "spring bounce". ii) Tories were under quite a bit of pressure when they did HTB2 from the media last time. I am not sure that they will risk more. iii) Does the removal of stamp duty really affect things that much for the buyer ? Anyway, I'm with the "pump it up crowd". The more of this stuff they keep rolling out to goose up the market, the more I know hanging on for me is the right thing to do. Either I might gain from the fact that they desperately come out with better deals to try to convince me to buy (low mortgage rates, no stamp duty, other incentives), or I might gain if the whole lot goes t*ts up at some point. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted October 21, 2013 Share Posted October 21, 2013 Abolishing stamp duty on housing would be a good thing, it's one of the craziest taxes there is. The government is charging people money for the privilege of moving house, a process which involves no production or consumption. If that alone weren't bad enough, it has been implemented in the most market-distorting way possible by making it so that the rate applies to the whole value, not just the value above a certain threshold. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted October 21, 2013 Share Posted October 21, 2013 Abolishing stamp duty on housing would be a good thing, it's one of the craziest taxes there is. The government is charging people money for the privilege of moving house, a process which involves no production or consumption. If that alone weren't bad enough, it has been implemented in the most market-distorting way possible by making it so that the rate applies to the whole value, not just the value above a certain threshold. Its so easy to collect though isn't it? Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted October 21, 2013 Author Share Posted October 21, 2013 Are there any substantial facts behind this or is it just speculation ? Anyway, my speculation in response to the speculation : i) March will be too late for the "spring bounce". ii) Tories were under quite a bit of pressure when they did HTB2 from the media last time. I am not sure that they will risk more. iii) Does the removal of stamp duty really affect things that much for the buyer ? Anyway, I'm with the "pump it up crowd". The more of this stuff they keep rolling out to goose up the market, the more I know hanging on for me is the right thing to do. Either I might gain from the fact that they desperately come out with better deals to try to convince me to buy (low mortgage rates, no stamp duty, other incentives), or I might gain if the whole lot goes t*ts up at some point. Pure speculation on my behalf.. I believe they are trying to please their own pockets as much as older homeownerists. I also think you are underestimating their desire to pump up prices for the next election. Quote Link to comment Share on other sites More sharing options...
jb5000 Posted October 21, 2013 Share Posted October 21, 2013 Hasn't low interest rates, HTB etc. proved to us that cost of housing has lost all relationship to value of the asset but is now just related to affordability of the target audience? A reasonable house for a family of young professionals will just be priced at the level that the typical buyer can afford with a debt slave mortgage. I'm not convinced that the abolition of SDLT will be passed on to the buyer, I just think that the extra 3% will be thrown onto the cost of the house. Especially as that amount can be mortgaged rather than paid in cash. Houses bouncing around £250k will now easily trickle up to £260 - £270k as there's much less of an incentive not to break the magic £250k, both logically and subconsciously. Quote Link to comment Share on other sites More sharing options...
oracle Posted October 21, 2013 Share Posted October 21, 2013 Dangerous. I would expect there are a lot of young angry people right now. I know there is a lot of old angry people it's meant to cause friction. the "puppetmaster" behind the scenes is trying deliberately, through proxies, to start a fight between anglo-saxondom, radical islam and russia. kills 3 birds with 1 stone so to speak. he's going to piss off all 3. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted October 21, 2013 Share Posted October 21, 2013 As per title really, I fully expect the government to announce that nobody has to pay SDLT on property under £600k, it will be announced in the March 2014 budget and timed to cause a spring bounce. It will be announced as 'A measure to help hard working families'. It will remove another barrier to entry and help push up prince in spring by another few percent. I doubt it. HTB is £600k instead of £500k so people can pay the extra 1% instead of it suppressing prices to below £500k. I think Osborne is more likely to remove the 250k threshold e.g. make it 300k or a blanket 3% on anything under 500k with SDLT added to the mortgage to help people with "aspirations". Why wait until next March anyway he could do something in the Autumn statement? Quote Link to comment Share on other sites More sharing options...
Golightly Posted October 21, 2013 Share Posted October 21, 2013 Autumn Statement is being tipped for changes... http://citywire.co.uk/money/stamp-duty-tipped-for-autumn-statement-shakeup/a70529 Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 21, 2013 Share Posted October 21, 2013 I think they will hand out free photos of Rhianna's bottom to anyone who promises to vote for them - vote for the Tories and not the bottom. Quote Link to comment Share on other sites More sharing options...
mrtickle Posted October 21, 2013 Share Posted October 21, 2013 I'm not convinced that the abolition of SDLT will be passed on to the buyer, I just think that the extra 3% will be thrown onto the cost of the house. Especially as that amount can be mortgaged rather than paid in cash. Indeed, no guesswork required. The same thing happened with the stamp duty holiday. Prices went up because "buyers had the extra stamp duty money available to spend on the houses." in the minds of sellers. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 21, 2013 Share Posted October 21, 2013 They won't get rid of it anyhow as it brings in loads of money for Osborne. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 21, 2013 Share Posted October 21, 2013 Autumn Statement is being tipped for changes... http://citywire.co.uk/money/stamp-duty-tipped-for-autumn-statement-shakeup/a70529 I think you missed part of the link: http://citywire.co.uk/money/stamp-duty-tipped-for-autumn-statement-shakeup/a705299 Welcome to the forum Golightly. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted October 22, 2013 Share Posted October 22, 2013 (edited) Hard to see Osborne scrapping SDLT and any suggested shake up to either the thresholds(eg move them up) or the way it operates(remove the cliff edge) will result in even more eye-watering bills for some, if it were to be done on a revenue-neutral basis. Is Osborne going to spare a £300k purchaser a £9k SDLT billl to add to the £30k SDLT burden of a help to buy purchaser at the top end of £600k? Unless he's going to be cutting taxes it's hard to see what he will be able to do. Under an income tax style system preserving the thresholds and rates in force today, a £300k purchase would attract SDLT of £2,750, a £600k purchase attracts a bill of £13, 750. A huge drop in revenue at the stroke of a pen. Edited October 22, 2013 by The B.L.T. Quote Link to comment Share on other sites More sharing options...
the gardener Posted October 22, 2013 Share Posted October 22, 2013 Hard to see Osborne scrapping SDLT and any suggested shake up to either the thresholds(eg move them up) or the way it operates(remove the cliff edge) will result in even more eye-watering bills for some, if it were to be done on a revenue-neutral basis. Is Osborne going to spare a £300k purchaser a £9k SDLT billl to add to the £30k SDLT burden of a help to buy purchaser at the top end of £600k? Unless he's going to be cutting taxes it's hard to see what he will be able to do. Under an income tax style system preserving the thresholds and rates in force today, a £300k purchase would attract SDLT of £2,750, a £600k purchase attracts a bill of £13, 750. A huge drop in revenue at the stroke of a pen. Not to mention how furious I would be having just shelled out over £9k on this vile tax earlier this year. Quote Link to comment Share on other sites More sharing options...
ingermany Posted October 22, 2013 Share Posted October 22, 2013 Autumn Statement is being tipped for changes... http://citywire.co.uk/money/stamp-duty-tipped-for-autumn-statement-shakeup/a70529 Scotland has said it will introduce this system in 2015 and mortgage expert Ray Boulger of John Charcol expected chancellor George Osborne to follow suit. ‘I think [Osborne] will move on it…because he will look stupid if he lets Scotland do it [and doesn’t change if for the rest of the UK},’ said Boulger. Like "graduate tax", social care costs and prescription charges? Yes, Osborne would look stupid if he didn't maintain equal policies on taxation across the whole of UK. Oh, hang on a minute. What an ignorant and odious snout in the trough waste of space. Quote Link to comment Share on other sites More sharing options...
ingermany Posted October 22, 2013 Share Posted October 22, 2013 Hard to see Osborne scrapping SDLT and any suggested shake up to either the thresholds(eg move them up) or the way it operates(remove the cliff edge) will result in even more eye-watering bills for some, if it were to be done on a revenue-neutral basis. Is Osborne going to spare a £300k purchaser a £9k SDLT billl to add to the £30k SDLT burden of a help to buy purchaser at the top end of £600k? Unless he's going to be cutting taxes it's hard to see what he will be able to do. Under an income tax style system preserving the thresholds and rates in force today, a £300k purchase would attract SDLT of £2,750, a £600k purchase attracts a bill of £13, 750. A huge drop in revenue at the stroke of a pen. In years gone by anyone spending 600K on a house would have been deemed a fair target for punitive taxes. Now, someone who can "only" afford 600K qualifies for government assistance from the welfare budget via the help to buy fund. That is a significant change in circumstances. And it is somewhat inconsistent to be donating aid to a "hard pressed family" and also taxing them to the tune of a 13K lump sum. Quote Link to comment Share on other sites More sharing options...
weirofhermiston Posted October 22, 2013 Share Posted October 22, 2013 Autumn Statement is being tipped for changes... http://citywire.co.uk/money/stamp-duty-tipped-for-autumn-statement-shakeup/a70529 That Citywire article is an information free zone. The Chancellor may indeed do something to SDLT. He may also scrap income tax and abolish capital gains tax, he's the chancellor. The only "evidence" they present that goes beyond idle speculation is that Ray Boulger would like it to happen. Government have various schemes in place to inflate the housing market, all these schemes benefit the banks or the builders with direct inputs of taxpayer money or buying risk off them at well below market price. SDLT changes will not benefit their friends as directly as their other schemes and they've shown themselves unafraid of criticism on that front. The housing market is heading back into bubble territory without changes to SDLT, and government revenues are improving as a result. My idle speculation is that there'll be no change. Can I have a job making up news stories for Citywire? It might be amusing to take a look at the paper edition and see who has bought advertising on the page that contains this non-story and the ones near it. Quote Link to comment Share on other sites More sharing options...
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