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Stamp Duty Burden Rises 40% In A Year As Treasury Takes £27Million A Day From Sale Of Homes

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http://www.dailymail.co.uk/news/article-2619295/Stamp-duty-burden-rises-40-year-Treasury-takes-27million-A-DAY-sale-homes.html

House buyers have been forced to stump up £10billion in stamp duty in just one year, official figures reveal.

Driven by rising property prices the bill has jumped a staggering 40 per cent since last March, according to the Office for Budget Responsibility.

The figure is the equivalent of £27million every day going into the Treasury’s coffers.

Spiralling house prices mean an increasing proportion of homebuyers now have to pay the tax, which used to apply only to the most expensive properties.

The idea that property is getting more expsensive appears to have escaped them!!!

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It's not a burden. If you can afford the house, you can afford the stamp duty. Think of it as a slow motion version of the European transaction tax.

Personally, I'd grade stamp duty based on what proportion of the price is going to be mortgaged. Double the stamp duty for anyone supporting the purchase with less than 30% cash or equity. That should sort the buggers out.

.

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Like so many taxes it is purely opportunistic. Someone is doing something involving money, let's tax it, and the more money they have - the more we will tax away for ourselves. Nevermind the consequences - the incidental social engineering.

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Personally, I'd grade stamp duty based on what proportion of the price is going to be mortgaged. Double the stamp duty for anyone supporting the purchase with less than 30% cash or equity. That should sort the buggers out.

Not sure that would be a good idea. It would favour those that have already benefited from HPI and punish FTBs.

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Nope. It would punish the FTBs who are keen to get on the ladder with an "affordable" mortgage that's going to bit them on the buttorks when interest rates rise. Without this group, the relentless push on the market would disappear and only those who had grown equity over a longer period (by paying the mortgage) would truly benefit.

Thinking a little deeper, I think I'd grade it on deposit plus current base rate, to ease the pain for people getting on the merry go round in more sensible times.

My cunning plan obviously doesn't stop the London market being bought up for cash by Johnny Foreigner. A good dose of 15% duty over £2M and 15% on BTL should sort that problem out. All tax raised to go towards building affordable housing.

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It's not a burden. If you can afford the house, you can afford the stamp duty. Think of it as a slow motion version of the European transaction tax.

Personally, I'd grade stamp duty based on what proportion of the price is going to be mortgaged. Double the stamp duty for anyone supporting the purchase with less than 30% cash or equity. That should sort the buggers out.

.

....they can't afford to buy the house otherwise they would not have borrowed the money (or they may have if they had better places to put their cash than housing)....the lenders and the borrowers have built in a risk factor that 'things will get better' prices will increase and wages will increase.....but higher prices and holding certain assets does not always mean better or richer in the future. ;)

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