rantnrave Posted February 24, 2021 Share Posted February 24, 2021 Stamp duty holiday will be extended until end of June https://propertyindustryeye.com/stamp-duty-holiday-set-to-extended-until-end-of-june/ Rishi Sunak is said to be preparing to introduce a three-month extension to the stamp duty holiday to allow more time for existing property deals to be completed. The chancellor is planning to announce a limited extension through to the end of June to help prevent thousands of property sales from falling through, the Times has reported. Sunak has been under growing pressure to extend the deadline amid concerns it will create a cliff-edge and risk thousands of buyers pulling out of transactions if they miss the deadline for the tax break. A petition demanding a stamp duty holiday extension, which has proved popular with buyers and sellers, as well as agents, conveyancing solicitors, mortgage lenders and surveyors, has now attracted more than 150,000 signatures. The Times has been told that the chancellor will use his Budget next week to move the stamp duty holiday deadline to the end of June, bringing it into line with the easing of lockdown. The extension to the policy could cost the Treasury around £1bn. According to newspaper, the chancellor is also expected to extend the furlough scheme, which is due to conclude at the end of April 30, over the same period before it tapers off as people return to work. The business rates holiday for retail, hospitality and leisure sector will also reportedly be extended, along with the VAT cut for hospitality and tourism. However, the article in The Times makes no reference to capital gains tax. There is mounting speculation that the chancellor Rishi Sunak will increase capital gains tax rates in the Budget next week, as he looks to find the money required to cover the government’s unprecedented spending and borrowing during the pandemic. CGT is generally currently charged at 10% for basic taxpayers, but there are growing calls that it should be increased across the board or possibly aligned to income tax rates – at up to 45% for higher rate taxpayers. As far as residential property is concerned, CGT is currently charged at 18% on for basic rate taxpayers and 28% on any amount above the basic rate. Higher or additional rate taxpayers pay 28% on any gains from residential property, along with trustees or personal representatives of someone who has died. Paul Joyce, head of mergers and acquisitions at Mazars in London, said: “We may well see an increase in CGT rates with immediate effect, potentially to align them with income tax rates.” The government’s tax adviser recently recommended that CGT be overhauled with proposals that could see the number of people hit by the duty increase sharply. Sunak, who commissioned the review, is considering proposals by the Office of Tax Simplification (OTS), a Treasury-based body, to reform capital gains tax in the light of the economic and fiscal impact of the Covid-19 crisis. The move has the potential to bring in an extra £14bn by reducing exemptions and doubling rates, according to the review. Quote Link to comment Share on other sites More sharing options...
Former postman Posted February 24, 2021 Share Posted February 24, 2021 SD being kicked into the long grass again. Tentatively agree with the CGT rises. Believe it when I see it though. Quote Link to comment Share on other sites More sharing options...
adarmo Posted February 24, 2021 Share Posted February 24, 2021 1 hour ago, Postman said: SD being kicked into the long grass again. Tentatively agree with the CGT rises. Believe it when I see it though. I'm good with killing sdlt for single home owners (not multiple) and making up the difference with cgt. Never understood why unearned revenue is taxed at a higher rate. To the argument it will detract entrepreneurs i don't buy it. Most don't do it for the money. But, can still give them entrepreneur relief if we think it would stop 'wealth creation'. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted February 24, 2021 Share Posted February 24, 2021 May be a few HODLERs with clenched buttocks this morning. 45%...nasty. Tiny violin. Quote Link to comment Share on other sites More sharing options...
Huggy Posted February 24, 2021 Share Posted February 24, 2021 49 minutes ago, HovelinHove said: May be a few HODLERs with clenched buttocks this morning. 45%...nasty. Tiny violin. That's okay. Ich parlez Espanish should my profitz hit seven figures as hoped! https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates Quote Link to comment Share on other sites More sharing options...
Marshall211 Posted February 24, 2021 Share Posted February 24, 2021 Santa Sunak has spoken again and opened the forever full cookie jar. Jokes aside, how does the 3 month extension not create another cliff edge if it is extended for all? Will this not lead to yet another sugar rush to meet the June deadline and come June we will see Daily Telegraph shamelessly run sob stories of how rich people will be robbed of their happiness if they are not allowed to save 15k. And since when did price correction become bad for the economy. House prices are tradeable assets, just like any other and they must be allowed to fluctuate in value. But I guess it is the interest groups and not logic that drives policy. Quote Link to comment Share on other sites More sharing options...
Locke Posted February 24, 2021 Share Posted February 24, 2021 Quote Link to comment Share on other sites More sharing options...
sammersmith Posted February 24, 2021 Share Posted February 24, 2021 9 minutes ago, Marshall211 said: how does the 3 month extension not create another cliff edge if it is extended for all? It does. You can bet people will start new purchases now with the hope of making the new deadline. People seem to be wildly optimistic that everything will be solved by summer. See increase in holiday bookings as another example of this misplaced optimism. 10 minutes ago, Marshall211 said: Will this not lead to yet another sugar rush to meet the June deadline and come June we will see Daily Telegraph shamelessly run sob stories of how rich people will be robbed of their happiness if they are not allowed to save 15k. Yes, it will. But i don't think they will get any sympathy next time. Three months is plenty enough time to get any existing purchases that were aiming for end of March over the line, no matter how delayed the searches / mortgage etc are. It will be very tight if you're starting a purchase now though. I expect auctions will be popular in the next 3 months as a means for LL to complete quickly and use up the last of their bounce back loan cheques. Quote Link to comment Share on other sites More sharing options...
PaulTW Posted February 24, 2021 Share Posted February 24, 2021 2 minutes ago, sammersmith said: It does. You can bet people will start new purchases now with the hope of making the new deadline. People seem to be wildly optimistic that everything will be solved by summer. See increase in holiday bookings as another example of this misplaced optimism. We'll be back here in mid-May following an announcement that the stamp duty holiday is extended again. Really feel this is a jar that shouldn't have been opened. More "I can't complete in time it isn't fair" moaners will be in the press with a sob story in a few months. Quote Link to comment Share on other sites More sharing options...
Jim Bexley Posted February 24, 2021 Share Posted February 24, 2021 59 minutes ago, Huggy said: That's okay. Ich parlez Espanish should my profitz hit seven figures as hoped! https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates Can’t hop over for a year and declare temporarily in another country if that’s what you’re thinking. You would need to stay there as well (for at least six years) otherwise you’ll get hit with the CGT when you return. https://www.mauriceturnorgardner.com/news-analysis/brief/2014/08/20/length-absence-required-achieve-non-uk-residence/ Quote Link to comment Share on other sites More sharing options...
rantnrave Posted February 24, 2021 Author Share Posted February 24, 2021 59 minutes ago, Marshall211 said: Jokes aside, how does the 3 month extension not create another cliff edge if it is extended for all? Three months is, IMO, the longest they can offer without sparking another buying frenzy. There just isn't enough time to complete unless you're in the pipeline already. Quote Link to comment Share on other sites More sharing options...
Trump Invective Posted February 24, 2021 Share Posted February 24, 2021 That stamp duty stuff is irrelevant - if people have the dough, and are insane, they will buy. The real aim is to prevent a housing market cliff edge. Johnson is criticised for reopening slowly - we all know that "caution" is actually a caution against exposure to economic realities Quote Link to comment Share on other sites More sharing options...
Huggy Posted February 24, 2021 Share Posted February 24, 2021 19 minutes ago, Jim Bexley said: Can’t hop over for a year and declare temporarily in another country if that’s what you’re thinking. You would need to stay there as well (for at least six years) otherwise you’ll get hit with the CGT when you return. https://www.mauriceturnorgardner.com/news-analysis/brief/2014/08/20/length-absence-required-achieve-non-uk-residence/ If we get to that point, I will ask myself the question "is 6 years living abroad worth £1.5m savings?" (or whatever the actual savings and number of years may be). The answer might be an easy 'yes'. Quote Link to comment Share on other sites More sharing options...
wighty Posted February 24, 2021 Share Posted February 24, 2021 "The Times has been told..........." Who by?. The guy that delivers the sandwiches?. Quote Link to comment Share on other sites More sharing options...
wighty Posted February 24, 2021 Share Posted February 24, 2021 (edited) 3 hours ago, adarmo said: I'm good with killing sdlt for single home owners (not multiple) and making up the difference with cgt. Never understood why unearned revenue is taxed at a higher rate. To the argument it will detract entrepreneurs i don't buy it. Most don't do it for the money. But, can still give them entrepreneur relief if we think it would stop 'wealth creation'. To the argument it will detract entrepreneurs i don't buy it. Many won't risk buying shares if you lose 45% of the profit. Most don't do it for the money. Of course they do. Do you think BTLers do it for fun?. If he meddles too much with CGT, the stock market will crash. Edited February 24, 2021 by wighty Quote Link to comment Share on other sites More sharing options...
doomed Posted February 24, 2021 Share Posted February 24, 2021 Quote Link to comment Share on other sites More sharing options...
MancTom Posted February 24, 2021 Share Posted February 24, 2021 5 hours ago, rantnrave said: Stamp duty holiday will be extended until end of June https://propertyindustryeye.com/stamp-duty-holiday-set-to-extended-until-end-of-june/ Rishi Sunak is said to be preparing to introduce a three-month extension to the stamp duty holiday to allow more time for existing property deals to be completed. The chancellor is planning to announce a limited extension through to the end of June to help prevent thousands of property sales from falling through, the Times has reported. Sunak has been under growing pressure to extend the deadline amid concerns it will create a cliff-edge and risk thousands of buyers pulling out of transactions if they miss the deadline for the tax break. A petition demanding a stamp duty holiday extension, which has proved popular with buyers and sellers, as well as agents, conveyancing solicitors, mortgage lenders and surveyors, has now attracted more than 150,000 signatures. The Times has been told that the chancellor will use his Budget next week to move the stamp duty holiday deadline to the end of June, bringing it into line with the easing of lockdown. The extension to the policy could cost the Treasury around £1bn. According to newspaper, the chancellor is also expected to extend the furlough scheme, which is due to conclude at the end of April 30, over the same period before it tapers off as people return to work. The business rates holiday for retail, hospitality and leisure sector will also reportedly be extended, along with the VAT cut for hospitality and tourism. However, the article in The Times makes no reference to capital gains tax. There is mounting speculation that the chancellor Rishi Sunak will increase capital gains tax rates in the Budget next week, as he looks to find the money required to cover the government’s unprecedented spending and borrowing during the pandemic. CGT is generally currently charged at 10% for basic taxpayers, but there are growing calls that it should be increased across the board or possibly aligned to income tax rates – at up to 45% for higher rate taxpayers. As far as residential property is concerned, CGT is currently charged at 18% on for basic rate taxpayers and 28% on any amount above the basic rate. Higher or additional rate taxpayers pay 28% on any gains from residential property, along with trustees or personal representatives of someone who has died. Paul Joyce, head of mergers and acquisitions at Mazars in London, said: “We may well see an increase in CGT rates with immediate effect, potentially to align them with income tax rates.” The government’s tax adviser recently recommended that CGT be overhauled with proposals that could see the number of people hit by the duty increase sharply. Sunak, who commissioned the review, is considering proposals by the Office of Tax Simplification (OTS), a Treasury-based body, to reform capital gains tax in the light of the economic and fiscal impact of the Covid-19 crisis. The move has the potential to bring in an extra £14bn by reducing exemptions and doubling rates, according to the review. but we still end up with a cliff edge in June...so extend again? Why not only extend for cases where the sale as agreed prior to the announcement and not for new agreed sales? Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted February 24, 2021 Share Posted February 24, 2021 2 hours ago, Marshall211 said: Santa Sunak has spoken again and opened the forever full cookie jar. Jokes aside, how does the 3 month extension not create another cliff edge if it is extended for all? Will this not lead to yet another sugar rush to meet the June deadline and come June we will see Daily Telegraph shamelessly run sob stories of how rich people will be robbed of their happiness if they are not allowed to save 15k. And since when did price correction become bad for the economy. House prices are tradeable assets, just like any other and they must be allowed to fluctuate in value. But I guess it is the interest groups and not logic that drives policy. A tax break for businesses that have been allowed to remain open with a product that has risen in value. What is the point when there are lots of businesses where the government has mandated they have remained closed. I dont see how it will matter anyhow as around here the pricing is deluded and not much is shifting since the prices got hiked. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted February 24, 2021 Share Posted February 24, 2021 1 hour ago, Trump Invective said: That stamp duty stuff is irrelevant - if people have the dough, and are insane, they will buy. The real aim is to prevent a housing market cliff edge. Johnson is criticised for reopening slowly - we all know that "caution" is actually a caution against exposure to economic realities I have been getting that feeling also. Say we opened now in low season hospitality and tourism would open up ..... and then have the bills come due with potentially lesser or the same low season income. By delaying into the summer peoples minds will be as the last lockdown getting out and tourism will open up busy. The reckoning will still come but after a busy summer and nobody will notice ...... Quote Link to comment Share on other sites More sharing options...
GregBowman Posted February 24, 2021 Share Posted February 24, 2021 (edited) 4 hours ago, adarmo said: I'm good with killing sdlt for single home owners (not multiple) and making up the difference with cgt. Never understood why unearned revenue is taxed at a higher rate. To the argument it will detract entrepreneurs i don't buy it. Most don't do it for the money. But, can still give them entrepreneur relief if we think it would stop 'wealth creation'. 100% the entrepreneurs relief is capped at a million anyway, I would leave but exclude property companies Unearned wealth is taxed less because your a serf sorry subject and it limits the ability for people to become socially mobile through taking an unfair amount of their wages away and thus accruing capital Handy if you already own assets Edited February 24, 2021 by GregBowman Quote Link to comment Share on other sites More sharing options...
Freki Posted February 24, 2021 Share Posted February 24, 2021 CGT is the same as stamp duty, a tax on transaction. Bad tax when it comes down to property. Get rid of it and replace it with a property tax based on valuation actualised every year Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 24, 2021 Share Posted February 24, 2021 6 hours ago, rantnrave said: Stamp duty holiday will be extended until end of June https://propertyindustryeye.com/stamp-duty-holiday-set-to-extended-until-end-of-june/ Rishi Sunak is said to be preparing to introduce a three-month extension to the stamp duty holiday to allow more time for existing property deals to be completed. The chancellor is planning to announce a limited extension through to the end of June to help prevent thousands of property sales from falling through, the Times has reported. Sunak has been under growing pressure to extend the deadline amid concerns it will create a cliff-edge and risk thousands of buyers pulling out of transactions if they miss the deadline for the tax break. A petition demanding a stamp duty holiday extension, which has proved popular with buyers and sellers, as well as agents, conveyancing solicitors, mortgage lenders and surveyors, has now attracted more than 150,000 signatures. The Times has been told that the chancellor will use his Budget next week to move the stamp duty holiday deadline to the end of June, bringing it into line with the easing of lockdown. The extension to the policy could cost the Treasury around £1bn. According to newspaper, the chancellor is also expected to extend the furlough scheme, which is due to conclude at the end of April 30, over the same period before it tapers off as people return to work. The business rates holiday for retail, hospitality and leisure sector will also reportedly be extended, along with the VAT cut for hospitality and tourism. However, the article in The Times makes no reference to capital gains tax. There is mounting speculation that the chancellor Rishi Sunak will increase capital gains tax rates in the Budget next week, as he looks to find the money required to cover the government’s unprecedented spending and borrowing during the pandemic. CGT is generally currently charged at 10% for basic taxpayers, but there are growing calls that it should be increased across the board or possibly aligned to income tax rates – at up to 45% for higher rate taxpayers. As far as residential property is concerned, CGT is currently charged at 18% on for basic rate taxpayers and 28% on any amount above the basic rate. Higher or additional rate taxpayers pay 28% on any gains from residential property, along with trustees or personal representatives of someone who has died. Paul Joyce, head of mergers and acquisitions at Mazars in London, said: “We may well see an increase in CGT rates with immediate effect, potentially to align them with income tax rates.” The government’s tax adviser recently recommended that CGT be overhauled with proposals that could see the number of people hit by the duty increase sharply. Sunak, who commissioned the review, is considering proposals by the Office of Tax Simplification (OTS), a Treasury-based body, to reform capital gains tax in the light of the economic and fiscal impact of the Covid-19 crisis. The move has the potential to bring in an extra £14bn by reducing exemptions and doubling rates, according to the review. https://metro.co.uk/2021/02/24/rishi-sunak-to-extend-stamp-duty-holiday-until-end-of-june-14135351/ "Stamp duty holiday ‘to be extended until end of June saving buyers £15,000" If anyone was in any doubt that the housing market is a corrupt scam then they should now have none. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 24, 2021 Share Posted February 24, 2021 2 hours ago, rantnrave said: Three months is, IMO, the longest they can offer without sparking another buying frenzy. There just isn't enough time to complete unless you're in the pipeline already. Gives them enough time to bring in a scheme to scrap it totally and push prices even higher Quote Link to comment Share on other sites More sharing options...
GregBowman Posted February 24, 2021 Share Posted February 24, 2021 2 hours ago, wighty said: To the argument it will detract entrepreneurs i don't buy it. Many won't risk buying shares if you lose 45% of the profit. Most don't do it for the money. Of course they do. Do you think BTLers do it for fun?. If he meddles too much with CGT, the stock market will crash. BTLers aren't entrepreneurs they are leeches You don't 'buy' shares you currently get 10% relief up to a million on shares you created through starting a business after three years. Distorted by venture vultures hence the £1 million cap Quote Link to comment Share on other sites More sharing options...
LetsBuild Posted February 24, 2021 Share Posted February 24, 2021 45% on CGT, immediately- wtf! Quote Link to comment Share on other sites More sharing options...
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