Jump to content
House Price Crash Forum
Frank Hovis

Call To Axe Stamp Duty For Older Downsizers

Recommended Posts

Cue flood of decent sized homes onto the market, especially if there is a hint that this is a temporary measure:

The chancellor should axe stamp duty for older people moving into smaller homes in next month’s Budget announcement, the Chartered Institute of Housing has said.

Grainia Long, CIH chief executive, said the Treasury should remove the tax for older homeowners receiving pension credit in order to make downsizing more affordable and to free up bigger homes for families.

‘When older people on lower incomes want to move from a home that has become too big and expensive for their needs, stamp duty can stand in their way,’ she said.

http://www.insidehousing.co.uk/regulation/cih-%E2%80%98axe-stamp-duty-for-older-people%E2%80%99/7002253.article

Share this post


Link to post
Share on other sites

Great, yet another ageist quirk to add to the longest tax code in the world. Why shouldn't younger downsizers be rewarded for freeing up family homes? Isn't the difference in price between a large house and a small one (which could easily be a sum worth multiple years of the average UK gross full time wage) reward enough?

If the problem is that a transaction tax is reducing the rate of transactions then cut it for everybody.

Share this post


Link to post
Share on other sites

Great, yet another ageist quirk to add to the longest tax code in the world. Why shouldn't younger downsizers be rewarded for freeing up family homes? Isn't the difference in price between a large house and a small one (which could easily be a sum worth multiple years of the average UK gross full time wage) reward enough?

If the problem is that a transaction tax is reducing the rate of transactions then cut it for everybody.

Why can't they rent? That would save them the stamp duty.

Oh, I forgot. Renting is for poor people and younger demographics not God's chosen ones.

Maybe they could fix renting instead.

Share this post


Link to post
Share on other sites

HPI has given them the biggest lotto win in the history of man and now they want a stamp duty freebie. Classic

What do you mean? Their tax free gains are for cruises and those hideous ornaments you see in Sunday supplements.

Not for paying tax.

Share this post


Link to post
Share on other sites

If these larger houses are sold up, I reckon they would be turned into flats! :blink:

Share this post


Link to post
Share on other sites

if you had all bothered to read the extent of the proposal instead of going off bashing boomers with their cruises etc - it is only for those on pension credit -.i.e those 1 in ten of pensioners who get all the other freebies (including smi) :angry:

Edited by olliegog

Share this post


Link to post
Share on other sites

If older people don't want to pay stamp duty maybe they should be campaigning for average house prices to fall below £125k.

Share this post


Link to post
Share on other sites

if you had all bothered to read the extent of the proposal instead of going off bashing boomers with their cruises etc - it is only for those on pension credit -.i.e those 1 in ten of pensioners who get all the other freebies (including smi) :angry:

Next you'll be telling me that income tax is a temporary measure.

Share this post


Link to post
Share on other sites

Next you'll be telling me that income tax is a temporary measure.

well that is a stupid comment - did I mention income tax /temporary measure.

I was trying to point out that you are all going off in boomer bashing (who incidentally pay council tax, incom tax, VAT ) when the proposal clearly states only for those on PENSION CREDIT who pay no council tax or income tax. but take the minority of an age group and assume it applies to all in that age group :angry:

Share this post


Link to post
Share on other sites

well that is a stupid comment - did I mention income tax /temporary measure.

I was trying to point out that you are all going off in boomer bashing (who incidentally pay council tax, incom tax, VAT ) when the proposal clearly states only for those on PENSION CREDIT who pay no council tax or income tax. but take the minority of an age group and assume it applies to all in that age group :angry:

Applies to pension credit recipients today but tomorrow once the precedent is set, who knows?

Share this post


Link to post
Share on other sites

If older people don't want to pay stamp duty maybe they should be campaigning for average house prices to fall below £125k.

Yep, sell their house for under the threshold will avoid the tax.

I remember being on a bus once, arguing about the free OAP pass.

An OAP said that the bus would just run empty at during the day (missing the obvious I know).

I replied that maybe some homeless kids could make use of their homes when they were on the bus - being empty at this time of day as OAP are all out on joy rides.

Apparently OAP only like spending other peoples money.

Share this post


Link to post
Share on other sites

how about counter proposal.

axe stamp duty for people who brought a hosue to live and have stamp duty on btl at 10%

Removal of stamp duty would feed into higher prices, the 'saving' possibly leveraged up into higher prices through credit.

That's rent for you.

Its an epic goat rodeo.

Share this post


Link to post
Share on other sites

Spare room tax for some; spare room windfall for others. hmmm

How do they propose to determine what constitutes 'downsizing'? Number of bedrooms? Price? It sure as heck wouldn't be floor area - that would set a dangerous precedent.

Share this post


Link to post
Share on other sites

Stamp duty should be scrapped for everyone. Stamp duty is one of the taxes that encourages sellers to ask for more, as they need more money just to trade sideways. It is a tax that stands in the way of more efficient allocation of housing. From people who change jobs, to those upsizing and then to downsizing. The government would probably raise more in tax from extra VAT collected from home improvements and upgrades than what they collect in stamp duty. If it were cheaper to move many people may move instead of making long commutes. Moving to a property that best suits someone's circumstances should be made as cheap as possible in a country that has a shortage of housing.

Edited by BalancedBear

Share this post


Link to post
Share on other sites

If these larger houses are sold up, I reckon they would be turned into flats! :blink:

Yep. They would be bought by property-developer shell companies (fronts for banks) and turned into flats with shoddy quick conversions (bish-bosh) to maximise 'value' or would be knocked down and replaced by jerry built 'luxury apartments' which would then be bought by foreign investors and be unoccupied. The powers that be can't risk a big flood of properties hitting the market all of a sudden.

Share this post


Link to post
Share on other sites

If these larger houses are sold up, I reckon they would be turned into flats! :blink:

Yep, for the kids to live in......anyway, bedrooms already filling up fast with returning children and lodgers to help supplement pension. ;)

Share this post


Link to post
Share on other sites

Stamp duty should be scrapped for everyone. Stamp duty is one of the taxes that encourages sellers to ask for more, as they need more money just to trade sideways. It is a tax that stands in the way of more efficient allocation of housing. From people who change jobs, to those upsizing and then to downsizing. The government would probably raise more in tax from extra VAT collected from home improvements and upgrades than what they collect in stamp duty. If it were cheaper to move many people may move instead of making long commutes. Moving to a property that best suits someone's circumstances should be made as cheap as possible in a country that has a shortage of housing.

Ludicrous to do away with stamp duty as its such an efficient tax and tricky to avoid (unless you are a foreigner with an offshore company).

Yet another bung to the asset owning class.

Share this post


Link to post
Share on other sites

Ludicrous to do away with stamp duty as its such an efficient tax and tricky to avoid (unless you are a foreigner with an offshore company).

Yet another bung to the asset owning class.

No, it should be scrapped, but only if replaced with annual/monthly LVT of some sort. It's obvious low hanging fruit for an LVT takeover. Next would be council tax, and then we can start looking at NI.

Share this post


Link to post
Share on other sites

if you had all bothered to read the extent of the proposal instead of going off bashing boomers with their cruises etc - it is only for those on pension credit -.i.e those 1 in ten of pensioners who get all the other freebies (including smi) :angry:

So why can't they jjust use the profit from selling their house? If they are downsizing they will only presumably be paying duty within the 1% threshold. Cos retirement properties are generally cheaper than equivalent one bed or two bed flats for the young.

Share this post


Link to post
Share on other sites

So why can't they jjust use the profit from selling their house? If they are downsizing they will only presumably be paying duty within the 1% threshold. Cos retirement properties are generally cheaper than equivalent one bed or two bed flats for the young.

......the big catch with very many of these leasehold retirement style properties are the maintenance charges....typically £3k or more PA and rising (I suppose they could always sell the old furniture to pay the SD) ....also will they be flood protected? ;)

Share this post


Link to post
Share on other sites

So why can't they jjust use the profit from selling their house? If they are downsizing they will only presumably be paying duty within the 1% threshold. Cos retirement properties are generally cheaper than equivalent one bed or two bed flats for the young.

Homeowners are not means tested.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   211 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.