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dreamOn120k

Stamp Duty Revenue Crash?

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Assuming a modest house price fall of 10% combined with the turnover crash of 30%. By my reckoning the government will loose £2.3bn in tax revenue on top of everything else that is heading south.

In fact as a significant slice of property transactions fall below the £250k threshold the tax revenue loss will be greater than my simple calc indicates.

http://www.hbosplc.com/media/pressreleases...section=halifax

New figures from HMRC show that total stamp duty revenue from residential property sales rose by 40% (£1.6bn) in 2006/07 to a record £6.4bn. Over the past five years annual residential stamp duty revenue has more than doubled with a 140% rise from £2.7bn in 2001/02 to £6.4bn in 2006/07.

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I was just thinking about this a minute ago and did a search and found your post. I'd of thought there would've been some more interest in this as it must take a bit off the GDP for this year ?

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Maybe those clever politicians will think of another tax, or increase some existing one.

Or just spend a bit more wisely... fades to whistful dream...

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The revenue lost will probably be even more severe, as there will be a amassive reduction in transaction volume as people stay put and try and save their money / reduce their debt.

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The revenue lost will probably be even more severe, as there will be a amassive reduction in transaction volume as people stay put and try and save their money / reduce their debt.

thats why the poster said turnover crash.

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Maybe those clever politicians will think of another tax, or increase some existing one.

Or just spend a bit more wisely... fades to whistful dream...

Rent tax?

A tax on not moving house?

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Rent tax?

A tax on not moving house?

anything really - it doesnt have to be housing related.

and even if they dont tax, they dont mind borrowing.

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thats why the poster said turnover crash.

Oh yeah, long day at the office me thinks. I really uoght to kow what turnover is as a chartered accountant :lol:

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Oh yeah, long day at the office me thinks. I really uoght to kow what turnover is as a chartered accountant :lol:

no worries - was just getting my own back after you pointed out my non-PC remark yesterday. ;)

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Assuming a modest house price fall of 10% combined with the turnover crash of 30%. By my reckoning the government will loose £2.3bn in tax revenue on top of everything else that is heading south.

Of course Darling could always lower the thresholds to recoup the losses, but - wait - that would only chase the market down, lol.

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Assuming a modest house price fall of 10% combined with the turnover crash of 30%. By my reckoning the government will loose £2.3bn in tax revenue on top of everything else that is heading south.

In fact as a significant slice of property transactions fall below the £250k threshold the tax revenue loss will be greater than my simple calc indicates.

http://www.hbosplc.com/media/pressreleases...section=halifax

Forget about house price falls - there has been very little volume of sales at all in the last 4/5 months = very little for the treasury in terms of stamp duty.

I think as price falls, volumes may pick up a bit, and at least Darling will get some revenue (even if it means alot of properties may have gone down a threshold).

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Rent tax?

A tax on not moving house?

A Window tax?

In fact I think developers are now anticipating this, driving past a newly built house near me I noticed a mock brick filled window on the gable side of the house.

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The problem is to be solved by a rise in Council Tax, and the introduction of both Congestion Charging on most major roads, and a green energy tax on everything from plastic bottles, to household heating bills.

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how about an eyebrow tax- but only payable if yours dont match the hair.

Or a tax on clicking your jaw in a stupid manner all the time.

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The problem is to be solved by a rise in Council Tax, and the introduction of both Congestion Charging on most major roads, and a green energy tax on everything from plastic bottles, to household heating bills.

....and a tax on fresh air....that would be a good one. Might write to Gordon with my idea.

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I think a tax on intelligence and enterprise should be implemented.

Actually forget I said that, I am covering old ground its already in force via the tuition fees system.

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Assuming a modest house price fall of 10% combined with the turnover crash of 30%. By my reckoning the government will loose £2.3bn in tax revenue on top of everything else that is heading south.

In fact as a significant slice of property transactions fall below the £250k threshold the tax revenue loss will be greater than my simple calc indicates.

http://www.hbosplc.com/media/pressreleases...section=halifax

Stamp duty is essentially a one-off tax, and the high cost of housing takes money out of the economy for years to come. My betting is that the Chancellor much prefers the tax that keeps on giving - VAT. On sweets/chocolates/cigarettes:- VAT is set at a level which every schoolkid pays, and a guaranteed stream of income week after week, year in and year out.

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The problem is to be solved by a rise in Council Tax, and the introduction of both Congestion Charging on most major roads, and a green energy tax on everything from plastic bottles, to household heating bills.

Trick to a good stealth tax is making majority of people think it is fair to punish the excess and making sure the reductions only go to a tiny minority of people. Those on the fringe pay marginally more but feel feel richer for it because of the status attached. Those at the botom think yeah good they deserve to pay, those at the very top don't really care.

Those slightly above average get sqeezed just a bit more, but not enough to throw thier toys outta the pram.

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Stamp duty is essentially a one-off tax, and the high cost of housing takes money out of the economy for years to come.

But my point is that part of the Brown public spending boom was funded by the Government grabbing a useful slice of the property boom via Stamp Duty. Suddenly £2-3 billion of annual revenue is going to disappear, that could amount to 1/10th of the defence budget.

As to the comment about housing taking money out of the economy, this will be true going forward but up to now most economists reckon that the UK housing boom has fuelled the consumer boom.

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But my point is that part of the Brown public spending boom was funded by the Government grabbing a useful slice of the property boom via Stamp Duty. Suddenly £2-3 billion of annual revenue is going to disappear, that could amount to 1/10th of the defence budget.

As to the comment about housing taking money out of the economy, this will be true going forward but up to now most economists reckon that the UK housing boom has fuelled the consumer boom.

And they would be right to think that.

The money generated was not by some miracle of a growing economy as suggested by Brown, it was generated by huge rises in property values with the vast majority of the public squandering the money via equity withdrawel, and mulitiple home ownership, and property flipping.

For those with an ounce of common sense this could be clearly seen some years ago and steps could be taken to avert the onslaught by not joining in the mass spending spree.

Many people will today feel comforted by the fact they are pretty much debt free, and their views have been vindicated by recent events. For the rest I am afraid they face a life of ruin, there was no miracle economy, the only miracle was that the General Public were fooled by a bunch of hooray henries that met over a coffee in Islington over a decade ago and hijacked the Labour Party.

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The government loves taxing us for our bad habits - tobacco, booze, petrol.

Stamp duty was a tax on the bad habit of paying too much for houses. The tax at last seems to be working.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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