Monday, Nov 23, 2015

The pigs start to squeal!

This is money: Hopes rise that top rate of stamp duty may be cut as sales of upmarket homes collapse

Tax experts believe the Chancellor has the chance to take action to cut the top rate of stamp duty this week citing a fall in tax revenues as sales of upmarket homes collapse.

Posted by hpwatcher @ 09:47 AM (5494 views)
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12 Comments

1. hpwatcher said...

No! No! No!

Monday, November 23, 2015 09:48AM Report Comment
 

2. icarus said...

hpw - no no, they aren't squealing, they're appealing on behalf of those on lower incomes. The chief executive of developer Residential Land is concerned by the adverse knock-on effect of the duty level on the number of affordable homes. "Leave wealth in place and it will trickle down" he's saying. (He wouldn't know that 'affordable homes' aren't affordable and that the set-up is such that for every 'affordable home' built a social housing home will be lost.)

On second thoughts, maybe your headline is correct.

Monday, November 23, 2015 10:44AM Report Comment
 

3. clockslinger said...

Yes, trickle down. Working like a dream since 1979.

Monday, November 23, 2015 12:40PM Report Comment
 

4. jack c said...

"Research for The Mail on Sunday, conducted by estate agency Knight Frank earlier this month"..........................now we know who's squealing !

Monday, November 23, 2015 03:32PM Report Comment
 

5. mombers said...

The mansion tax or making council tax more progressive was unthinkable to the Tories, but they had to appear to be doing something about taxing property, and they've slipped in their own turds. It's basic economics that transaction taxes are terrible. It goes without saying that it would have been a lot more efficient to raise the equivalent sum by an annual tax instead. Or just be honest and say that wealthy landowners are not expected to pay any more tax than they did before this change.

Monday, November 23, 2015 03:50PM Report Comment
 

6. quiet guy said...

"Bruce Ritchie, chief executive of developer Residential Land, said the high rate of stamp duty could also be hitting the number of affordable homes being built.

This is because the profit generated on flats of 1.5million-plus on a large development funds the affordable housing that is also built as a result of the development, he told Property Week magazine.

Put simply, higher stamp duty at the top end is choking off the supply of affordable housing with the result being that fewer homes overall are built.

You can read about Residential Land here:
http://www.residentialland.com/about-us.aspx

Under the heading "Our Services":
"Residential Land Rent, Sell and Buy Prime Central London.

We are a responsible Landlord with the widest selection of rental properties in the Capital, all managed in-house by a dedicated team.

We acquire London properties to build our extensive portfolio.

We offer a number of properties for sale including individual units and bulk investments"

Not a word about building.

Monday, November 23, 2015 08:01PM Report Comment
 

7. debtserf said...

So that uber-wealthy International money launderer can afford to pay millions for a flat in Kensington or Belgravia, but he balks at a few grand for stamp duty?

Sounds like a plausible explanation for the sudden steep drop in London...

Monday, November 23, 2015 08:56PM Report Comment
 

8. libertas said...

No doubt, no doubt, given that Corbyn will give him reason to not fear a mansion tax. Remember, with inflation, ALL will end up paying the higher rate in time. Income tax initially was only for the richest 1%, but the tax bands did not rise as fast as inflation.

Tuesday, November 24, 2015 01:53AM Report Comment
 

9. mombers said...

@8, VAT, income tax, etc have gone up hugely while council tax has been deliberately held back. My income tax bill went up by almost 20k under the coalition and is set to go up by the best part of 10k in the first year of this awful government. I won't go into the well documented evidence that higher council tax will just result in lower selling prices and rents, so no net effect on home buyers and renters.

Surely it's better to spread the burden of taxation as widely as possible and in the least damaging way? Income tax, corporation tax, VAT and NI all fall mainly on the working age population, whereas council tax at least gets pensioners to chip in and does not damage work incentives. Particularly important as state spending goes more and more towards pensioners...

Tuesday, November 24, 2015 09:51AM Report Comment
 

10. mister ed said...

@8

Remember, with inflation, ALL will end up paying the higher rate in time.

Not at all. You are assuming that rates and rating bands are static when they are not a blunder, and a classic Libbyballs. The government can change the rates and rating bands as they see fit and take people into or out of the higher rate.

Income tax initially was only for the richest 1%, but the tax bands did not rise as fast as inflation.

More people paying income tax had nothing (or very little) to do with inflation. Income tax was levied on a larger proportion of the population as we moved from an agrarian to a capitalist economy, and the tax revenue was used to build infrastructure (both physical and administrative) that enabled the economy to develop. Some of it even went to pay for the salaries of Libertarians employed by local government, and to pay for transport links which create house price inflation in areas lived in by some of those Libertarians employed by local government. :-)

Tuesday, November 24, 2015 04:23PM Report Comment
 

11. libertas said...

Mister Ed, yes, government could change the bands and they do, but given that they underestimate inflation to reduce pension liabilities and increase tax income, band shifting never keeps up and more and more get snared. It was never supposed to be that the vast majority of mid-earners in London would be hit by 40% tax, but they are, and that shift comes off the back of income tax being introduced to fund World War's with a tax on the top 2%.

Tuesday, November 24, 2015 04:44PM Report Comment
 

12. jack c said...

Mister Ed, whilst you are on here, could you also explain who pays the Stamp duty vs who actually bears the cost (back to a critical point within the article)

Tuesday, November 24, 2015 05:25PM Report Comment
 

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