Stamp Duty Nets The Treasury £1bn A Month

[Guest Riser]

Browns miracle economy is totally dependant on HPI to fuel consumer spending and finance government spending on civil service non jobs. This Summer will signal a long period of increasing interest rates which will cause the market to crash and leave millions in severe debt as they struggle to pay off mortgages and loans.

The number of transactions is likely to plummet on confirmation of a rate rise which will see stamp duty revenues dry up. Brown must move in the next couple of months if he is to stand any chance of getting into number 10.

Stamp duty nets the Treasury £1bn a month

Gordon Brown is raking in £1billion a month in stamp duty, according to figures released yesterday.

Inheritance tax is also proving a record money-spinner for the Chancellor, bringing in another £250million a month.

The £5billion windfall for the first four months of 2006 is in fact another stealth tax, say critics, because while house prices and legacies have risen rapidly, the Government's allowances have failed to keep pace.

As a result, over a 120-day period from January to April, the Chancellor took in £42million every day of the week, including weekends, just from these two taxes.

"Yet again we see him taxing Middle Britain by stealth,' said Shadow Chancellor George Osborne. 'Despite the highest taxes in history, he keeps adding to the burden.".......

ps Can we please get rid of the adds down the side they intefere with reading the forum and slow the site down !!

[Rachman]

The number of transactions is likely to plummet on confirmation of a rate rise which will see stamp duty revenues dry up. Brown must move in the next couple of months if he is to stand any chance of getting into number 10.

This is affecting liquidity in the market as much as anything, in a stagnant market (or a falling one) the real cost (it's cash you have to pay out, not borrow) of stamp duty starts to become disproportionate. you could swallow it in an up market with rising equity, but people just won't pay it for no return, so they sit still and they extend and do up their own places rather than moving... - at £250K, it's £11K plus most people paying 40% have to earn to simply pay yet another tax. So they don't do it. Add that to the agents' fees etc, and you get to a year's normal wages for the privilege of moving, so people won't do it.

[dog]

£50m to £10b in 10 years

And Gordon Brown said he would'nt put up income tax. That is like a burglar saying that he won't shoot you who then proceeds to disembowel you with a kitchen knife.

[Ignorant Steve]

Having recently paid over £30,000 in Stamp Duty. I think it's a great tax.

April was an expensive month. Stamp Duty and £60,000 income tax.

Good job the bonuses came in above target!

[BillyShears]

This is affecting liquidity in the market as much as anything, in a stagnant market (or a falling one) the real cost (it's cash you have to pay out, not borrow) of stamp duty starts to become disproportionate. you could swallow it in an up market with rising equity, but people just won't pay it for no return, so they sit still and they extend and do up their own places rather than moving... - at £250K, it's £11K plus most people paying 40% have to earn to simply pay yet another tax. So they don't do it. Add that to the agents' fees etc, and you get to a year's normal wages for the privilege of moving, so people won't do it.

If people are buying a home with a mortgage, it's not just £11K or so. It's £11K plus whatever additional interest they pay due to having to borrow more to pay for the house. For many with large mortgages that they cannot pay off in a hurry I'd think that 22K is closer to the additional amount that they will pay.

Billy Shears

Edited May 23, 2006 by BillyShears

[dog]

Having recently paid over £30,000 in Stamp Duty. I think it's a great tax.

April was an expensive month. Stamp Duty and £60,000 income tax.

Good job the bonuses came in above target!

Ignorant Steve

What is your age?

[OzzMosiz]

Having recently paid over £30,000 in Stamp Duty. I think it's a great tax.

April was an expensive month. Stamp Duty and £60,000 income tax.

Good job the bonuses came in above target!

Million pound home eh? Bullsh*tter!!

[Rachman]

Million pound home eh? Bullsh*tter!!

No, £30K is £750K...., £40K would be a million..... - perhaps he bought that 3 bed in Balham ?

[2005]

Gordon is also raising money through the sale of council houses.

Previoulsy, if you bought a council house with a discount (maximum £26K off the market value) then you had to stay in the house for the next three years. After that you could sell the house without paying anything back. If, however, you sold the house in the first three years you had to pay back a percentage (e.g yr 1 100%, Yr 2 60% yr 3 30%)

Now the length of time you have to stay in the house is five years - but if you sell in that time you don't pay back a percentage of the discount you pay back a percentage of the profit (the difference between what you buy for and what you sell for).

Leaving aside the argument about the rights and wongs of selling off council houses this seems 1) a bit late in the day and 2) risky.

If houses continue to rise people could be paying back far more than the discount they had and the government has it's own little share in property and cashes in on house price inflation.

It is a bit late in the day - if Gordon would have thought of this sooner he could have made a packet - some people may have ended up paying back more than the original value of the house if this had happened in the last four or five years.

[OzzMosiz]

No, £30K is £750K...., £40K would be a million..... - perhaps he bought that 3 bed in Balham ?

[Rachman]

Just wait till he's really desperate for cash and starts trying to tax people on the profit on the sale of their primary homes, then he really will be down to the bare bones voters - which is all his benefit claiming chums and all of the public sector who need him to keep their jobs.... - there will be major problems then as he will try not to admit he's taking money from you to buy their votes and secure the next election..... it's coming.

[Ignorant Steve]

Ignorant Steve

What is your age?

41. Took the "Rachman route" of building a career before kids. (We now have 2 under 3)

House price was just below £800,000. So not a million. We intend to stay until we die.

The equity from 2 flat sales in London gave us a decent deposit. And we have no problem paying off the mortgage even if both of us are made redundant.

[dog]

41. Took the "Rachman route" of building a career before kids. (We now have 2 under 3)

House price was just below £800,000. So not a million. We intend to stay until we die.

The equity from 2 flat sales in London gave us a decent deposit. And we have no problem paying off the mortgage even if both of us are made redundant.

Hmmmmm! You write like a 15 year old and your bonus came in above target (although you don't actually have a job).

[curious1]

so what proportion of the total tax income does this 1bn a month euqate to?

[Rachman]

so what proportion of the total tax income does this 1bn a month euqate to?

Sod all, if it were the Tories, it would be £12BN out of a total tax take of £189BN (last full Tory year), or 6%, under this profligate lot, it's 2.2% (they raised £541BN in taxes last year). About the same as they give out in fraudulent benefits by all accounts.

But by the time you add in the lump £21BN for 3G phone licences, the billions through discal drag, the billions poured into IT systems that will never work, you soon get the message that government will always swallow more than you can feed it.... - the problem is that this used to be a tax on the 'relatively' rich, now it hits most of middle England and it's already taxed income that you have to find to pay it (or use up some equity).

FWIW, I am 32 and went for the house at 30 - I can't really move unless I find a house that's going to cover a) the £100K of earnings it will cost to move and offers enough potential to make it a house worth more than the one I own - so I went for the house you don't have to move from (unless we are blessed with 5 kids).

Edited May 23, 2006 by Rachman

[G-Man]

2.5%.

G-Man

[Ignorant Steve]

Hmmmmm! You write like a 15 year old and your bonus came in above target (although you don't actually have a job).

Had you bothered to read some of my previous posts you may have seen that it's my wife who earns 80% of our household income.

[paulm]

ps Can we please get rid of the adds down the side they intefere with reading the forum and slow the site down !!

The ads down the side are no slower than the ads at the top and bottom.

How do they intefere with you reading the forum?

Paul

[Rachman]

Had you bothered to read some of my previous posts you may have seen that it's my wife who earns 80% of our household income.

I wish...... I can only imagine the conversation about man housekeeping money, no dear, you can't have any money for beer, we are spending it in Prada this year........

[Ignorant Steve]

I wish...... I can only imagine the conversation about man housekeeping money, no dear, you can't have any money for beer, we are spending it in Prada this year........

We have the following financial arrangement:

She pays all bills. She tells me how much to spend on her birthday and xmas presents. I get to keep the rest of my salary!

Funnily enough when we met I had more savings. (working class background compared to middle class "always had it all").

[Guest Riser]

The ads down the side are no slower than the ads at the top and bottom.

How do they intefere with you reading the forum?

Paul

They reduce the width of the page available for posts resulting in more wrapping of text and longer pages which require more scrolling down. They also catch the eye when you are reading or posting causing a general nuisance. The also look cheap and cheesy.

Edited May 23, 2006 by Riser

[dog]

Had you bothered to read some of my previous posts you may have seen that it's my wife who earns 80% of our household income.

But earlier on you said:

"And we have no problem paying off the mortgage even if both of us are made redundant."

So your wife has no job but still gets big bonuses. Hmmmm, Steve can I recommend that you take a look at this website.

[Guest]

ps Can we please get rid of the adds down the side they intefere with reading the forum and slow the site down !!

The adverts look excellent down the right hand side, on my DELL INSPIRON 6000 laptop computer.

You too can have a DELL INSPIRON 6000 laptop computer with a WIDE SCREEN, all for around £800, making viewing the House Price Crash Web Site a pleasure!

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[Ignorant Steve]

But earlier on you said:

"And we have no problem paying off the mortgage even if both of us are made redundant."

So your wife has no job but still gets big bonuses. Hmmmm, Steve can I recommend that you take a look at this website.

I don't know why I'm bothering to answer you. But have you heard of savings?

Our outstanding mortgage is less than readily available cash.

Plus my wife has 1 years notice written into her employment contract.

I'm sorry to make you feel so inadequate. Snide comments clearly based in jealousy are the hallmarks of a bitter and twisted mind. Perhaps you should have worked harder throughout your sad life?

[dog]

I don't know why I'm bothering to answer you. But have you heard of savings?

Our outstanding mortgage is less than readily available cash.

Plus my wife has 1 years notice written into her employment contract.

I'm sorry to make you feel so inadequate. Snide comments clearly based in jealousy are the hallmarks of a bitter and twisted mind. Perhaps you should have worked harder throughout your sad life?

I am only trying to help here Steve. You have told us that you are 41, extremely rich and you have just bought a house for £800,000K. You also said that your wife keeps you and she gets her money in the form of mysterious bonuses. It is this latter information that concerns me. Does she go to work in a fur coat?