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fru-gal

Do You Think The Reduction Of The Sdlt Threshold To £500K For Those Buying Via A Company Is Having Any Effect?

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Apparently the 15% tax threshold for SDLT for those buying via companies was reduced from £2 million to £500k in the budget (sorry I'm so late to find out about this, I stopped reading most news as it got too depressing).

Presumably this will have a big effect?

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Apparently the 15% tax threshold for SDLT for those buying via companies was reduced from £2 million to £500k in the budget (sorry I'm so late to find out about this, I stopped reading most news as it got too depressing).

Presumably this will have a big effect?

It will have a modest effect I am sure. It should really have been brought down to zero. It only applies to paper companies which only exist as a tax dodge. Edited by Ah-so

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Apparently the 15% tax threshold for SDLT for those buying via companies was reduced from £2 million to £500k in the budget (sorry I'm so late to find out about this, I stopped reading most news as it got too depressing).

Presumably this will have a big effect?

I'm wondering the same. It all helps. Nationwide suggesting there is risk conditions for the flow of overseas buyers we've been seeing may reverse - not sure if they also believe some might sell.

There's some indication of new rules making owners in those vehicles liable to other taxes like IHT isn't there?

Lost count of how many tightening measures are feeding through.

FLS for mortgages, no longer - (Slacker seemed to suggest we can't rule out 110% mortgages again, along with other home-owners are voters soft-landing.)

Stress testing/ECB becoming main regulator in November, with power to overrule Central Banks on some banking institutions + weak banks needing capital + banks going to be more likely to be allowed to fail, with bank management not being able to just run to BoE for total bailouts. Which means banks will want more profits and less likely be run recklessly, giving out loans that they doubt can be repaid = suggests cost of funding rise. (2-year fixes showing some sign of ticking up.)

MMR.

Edited by Venger

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I'm wondering the same. It all helps. Nationwide suggesting there is risk conditions for the flow of overseas buyers we've been seeing may reverse - not sure if they also believe some might sell.

There's some indication of new rules making owners in those vehicles liable to other taxes like IHT isn't there?

Lost count of how many tightening measures are feeding through.

FLS for mortgages, no longer - (Slacker seemed to suggest we can't rule out 110% mortgages again, along with other home-owners are voters soft-landing.)

Stress testing/ECB becoming main regulator in November, with power to overrule Central Banks on some banking institutions + weak banks needing capital + banks going to be more likely to be allowed to fail, with bank management not being able to just run to BoE for total bailouts. Which means banks will want more profits and less likely be run recklessly, giving out loans that they doubt can be repaid = suggests cost of funding rise. (2-year fixes showing some sign of ticking up.)

MMR.

Apparently they are exempt from the 15% SDLT charge over £500k if they rent the place out but I guess they are then likely to have to pay CGT, so either 15% SDLT through a foreign company if buying as a residence or 28% CGT when they sell. If they don't rent it out they are liable for inheritance tax when they die. They also have to pay £3.5k per year on properties up to £1 million and £7k on properties over £1 million. Not a lot but better than nowt.

http://www.ft.com/cms/s/0/4740df58-af74-11e3-9cd1-00144feab7de.html#axzz332EZthTA (hope you can read it).

Edited by fru-gal

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