Change stamp duty

Stamp duty should be paid on the difference between house prices when moving home not the total price of the new purchase.

Essentially I feel that the stamp duty system discourages economic mobility.

The desire to move to the right area is reduced by the burden of stamp duty.

For example if I got a new job in Sheffield and wished to move from Manchester the stamp duty would be applied even if my current house is exchanged for another house of equal value. Many houses are valued at over 250,000 and as such the cost would be £7500 at 3%.

That is a huge financial burden for a move that had no real improvement in property value.

In summary I feel stamp duty should be applied on the net difference in property prices. It should remain on all first properties and second homes.

Why is this idea important?

Stamp duty should be paid on the difference between house prices when moving home not the total price of the new purchase.

Essentially I feel that the stamp duty system discourages economic mobility.

The desire to move to the right area is reduced by the burden of stamp duty.

For example if I got a new job in Sheffield and wished to move from Manchester the stamp duty would be applied even if my current house is exchanged for another house of equal value. Many houses are valued at over 250,000 and as such the cost would be £7500 at 3%.

That is a huge financial burden for a move that had no real improvement in property value.

In summary I feel stamp duty should be applied on the net difference in property prices. It should remain on all first properties and second homes.

Review Stepped Stamp Duty Rates

An overhaul and review of the current stepped rates of stamp duty to a single rate for all domestic property values.

Currently a property costing £250,000 attracts stamp duty @ 1% or £2,500, if the cost rises to £255,000 stamp duty at a higher rate of 3% or £7,650 is levied  so the increase in cost to the purchaser is not £5,000 but over £10,000.

It gets worse with further stepped increases at £500,000 and £1million.

It must be possible to calculate a median percentage rate for all domestic properties over say £100,000 which would provide the same income to the Treasury and eliminate the iniquitous 'stepped' system.

Why is this idea important?

An overhaul and review of the current stepped rates of stamp duty to a single rate for all domestic property values.

Currently a property costing £250,000 attracts stamp duty @ 1% or £2,500, if the cost rises to £255,000 stamp duty at a higher rate of 3% or £7,650 is levied  so the increase in cost to the purchaser is not £5,000 but over £10,000.

It gets worse with further stepped increases at £500,000 and £1million.

It must be possible to calculate a median percentage rate for all domestic properties over say £100,000 which would provide the same income to the Treasury and eliminate the iniquitous 'stepped' system.

Stamp Duty

What the hell is this for?  I never got a 'stamp' everytime I bought a house!!  Taxes should be paid which benefit the people e.g money goes to education, health and law & order – this is just another money spinner with no reason or substance!!!

Why is this idea important?

What the hell is this for?  I never got a 'stamp' everytime I bought a house!!  Taxes should be paid which benefit the people e.g money goes to education, health and law & order – this is just another money spinner with no reason or substance!!!

Tax on foreign owned UK properties

Currently overseas resident individuals can buy and sell UK properties and avoid UK tax.

It is possible for them to avoid stamp duty when they buy them (by using overseas structures) and they are not subject to capital gains tax when they sell even if it is not their main residence.

The tax laws should be changed to:

a) make it impossible to avoid stamp duty on acquisition

b) make the sale of UK real estate subject to CGT even for non residents (like in Australia). If the individual owns no other worldwide property then the principle private exemption could apply.

Why is this idea important?

Currently overseas resident individuals can buy and sell UK properties and avoid UK tax.

It is possible for them to avoid stamp duty when they buy them (by using overseas structures) and they are not subject to capital gains tax when they sell even if it is not their main residence.

The tax laws should be changed to:

a) make it impossible to avoid stamp duty on acquisition

b) make the sale of UK real estate subject to CGT even for non residents (like in Australia). If the individual owns no other worldwide property then the principle private exemption could apply.

Stamp Duty & Council Tax an Unfair Assumption of Wealth

Both Stamp Duty & Council Tax assume someones wealth according to their home.

This isn't a true reflection. Wealth should be measured by earnings & taxes raised against earnings.

If two people earn the same but one spends his money on holidays & drink the other on improving his home. The home builder is taxed more on his Council Tax. Not fair.

If they were both to move it is reasonable to assume that they will move to similar standard properties they left. The home builder will be taxed more on Stamp Duty. Not fair.

A household with 5 earners will pay the property based Council Tax bill between them = 20% each. A single person in a similar property will be hit with 75% of the bill, almost four times as much. Not fair.

In these days of uncertainty & the need for people to move where work is available the average working man can be forced to move several times in his career. Paying Stamp Duty at every move. Not fair.

The super rich rarely have to move for work so wont be caught with the same multiple Stamp Duty bills.

Personally I would rather see taxation on earnings & on VAT, a reflection of my ability to pay.

If you earn it you will someday spend it so you will pay VAT.

Centrally collected income tax & VAT would be simply transfered to local authorities from central government, payment based on each head of population on the voting register. Replacing Council Tax.

The whole Council Tax & Stamp Duty gathering infrastructure / cost would be eliminated.

Why is this idea important?

Both Stamp Duty & Council Tax assume someones wealth according to their home.

This isn't a true reflection. Wealth should be measured by earnings & taxes raised against earnings.

If two people earn the same but one spends his money on holidays & drink the other on improving his home. The home builder is taxed more on his Council Tax. Not fair.

If they were both to move it is reasonable to assume that they will move to similar standard properties they left. The home builder will be taxed more on Stamp Duty. Not fair.

A household with 5 earners will pay the property based Council Tax bill between them = 20% each. A single person in a similar property will be hit with 75% of the bill, almost four times as much. Not fair.

In these days of uncertainty & the need for people to move where work is available the average working man can be forced to move several times in his career. Paying Stamp Duty at every move. Not fair.

The super rich rarely have to move for work so wont be caught with the same multiple Stamp Duty bills.

Personally I would rather see taxation on earnings & on VAT, a reflection of my ability to pay.

If you earn it you will someday spend it so you will pay VAT.

Centrally collected income tax & VAT would be simply transfered to local authorities from central government, payment based on each head of population on the voting register. Replacing Council Tax.

The whole Council Tax & Stamp Duty gathering infrastructure / cost would be eliminated.

Seller should pay stamp duty not the buyer

Like most taxes, once a government gets them in place, they are reluctant to lose them. A trade off would be to transfer the payment from the buyer to the seller.

Inevitably at the point of purchasing a house, the buyers finances are stretched. The additional tax at this time is throttling the market partticularly for first time buyers. Especially at a time of high deposits.

Sellers who go on to become buyers remain tax neutral if both property values are equal. People trading up still pay tax at the lesser rate for the sold house, so do not need to find extra funds, again at a time of financial strain. Sellers moving out of the market or trading down, will pay the tax at the top of the chain. These people we would assume are  in a finacially strong position with cash in the bank. At this point it is less difficult to find the funds.

In the early days there  may  need to be some sort or staged transfer of responsibility from buyers to sellers to avoid situations where people are unfairly treated by having to pay twice, if they are leaving the market within a couple of years of buying.

 

Why is this idea important?

Like most taxes, once a government gets them in place, they are reluctant to lose them. A trade off would be to transfer the payment from the buyer to the seller.

Inevitably at the point of purchasing a house, the buyers finances are stretched. The additional tax at this time is throttling the market partticularly for first time buyers. Especially at a time of high deposits.

Sellers who go on to become buyers remain tax neutral if both property values are equal. People trading up still pay tax at the lesser rate for the sold house, so do not need to find extra funds, again at a time of financial strain. Sellers moving out of the market or trading down, will pay the tax at the top of the chain. These people we would assume are  in a finacially strong position with cash in the bank. At this point it is less difficult to find the funds.

In the early days there  may  need to be some sort or staged transfer of responsibility from buyers to sellers to avoid situations where people are unfairly treated by having to pay twice, if they are leaving the market within a couple of years of buying.

 

Stamp Duty

A property costing £250,000 attracts 1% stamp duty at £2,500. A buyer of a property for £250,001 pays 3% on the whole sum £7500.03. A £1 addition to the price attracts an extra £5,000.03 in tax. That is a phenominal rate of taxation. Why isn't stamp duty taxed in bands so that it is 1% up to £250,000 and 3% on the amount over £250,000?

This is the way income tax works and there would be an outcry if income tax was treated like stamp duty. This would mean some earning £43,875 p.a. would pay 20% tax on the amount over the personal allowance but someone earning £1 p.a. more would pay 40% on all their taxable income. If it's unfair for income tax why is it not unfair for stamp duty?   

Why is this idea important?

A property costing £250,000 attracts 1% stamp duty at £2,500. A buyer of a property for £250,001 pays 3% on the whole sum £7500.03. A £1 addition to the price attracts an extra £5,000.03 in tax. That is a phenominal rate of taxation. Why isn't stamp duty taxed in bands so that it is 1% up to £250,000 and 3% on the amount over £250,000?

This is the way income tax works and there would be an outcry if income tax was treated like stamp duty. This would mean some earning £43,875 p.a. would pay 20% tax on the amount over the personal allowance but someone earning £1 p.a. more would pay 40% on all their taxable income. If it's unfair for income tax why is it not unfair for stamp duty?   

Repeal Stamp Duty

in 1694 Stamp duty was bought in in order to help fund the war against France. The tax was expected to run for 4 years but as a good earner it was kept after that period and up to modern day. This tax is long overdue for being repealed. 

Either get rid of Stamp Duty or start a war with France!

Even if a full repeal is impossible perhaps allow first time buyers to be exempt. 

# not serious about the "start war with France thing", don't want to find my door kicked in and held without trial or such stuff that the former Government thought was acceptable.

Why is this idea important?

in 1694 Stamp duty was bought in in order to help fund the war against France. The tax was expected to run for 4 years but as a good earner it was kept after that period and up to modern day. This tax is long overdue for being repealed. 

Either get rid of Stamp Duty or start a war with France!

Even if a full repeal is impossible perhaps allow first time buyers to be exempt. 

# not serious about the "start war with France thing", don't want to find my door kicked in and held without trial or such stuff that the former Government thought was acceptable.

Repeal stamp duty on house purchases

What does the government give me for  my stamp duty? Most of us move residences out of necessity, either because our families have outgrown our current living conditions or because we need to relocate for work purposes (as suggested by the government!). Yet to perform this necessary action the government stings me, and seeing that it's hard to find a residence below £250k in many parts of the country, one has to find at least £7.5k to simply hand over to the chancellor. The lost revenue can be recovered more fairly, and uniformly, either through VAT and/or income tax.

Why is this idea important?

What does the government give me for  my stamp duty? Most of us move residences out of necessity, either because our families have outgrown our current living conditions or because we need to relocate for work purposes (as suggested by the government!). Yet to perform this necessary action the government stings me, and seeing that it's hard to find a residence below £250k in many parts of the country, one has to find at least £7.5k to simply hand over to the chancellor. The lost revenue can be recovered more fairly, and uniformly, either through VAT and/or income tax.

Remove the thresholds for Stamp Duty on property sales (SDLT)

Remove the thresholds for Stamp Duty on property sales (SDLT) and replace with a single rate for all.

I've always thought that the stepped increase in stamp duty is unfair and I have personal experience of where this causes problems. 

At present there are thresholds at £125k, £250k and £500k, and also an initiative for first time buyers (up to £250k).

Problems are caused for both buyers and sellers for property sales around the threshold point and it is also unfair as the fixed thresholds do not take account of differing proprrty prices around the country.

For example buying a house for £250k (less a penny) will mean a 1% duty = £2.5k, but buying a house for £275k will mean a 3% duty = £8.25k.

This is a huge difference for what is really just the next step along the pricing ladder.

If tax is to be made from property sales, a fair system will be to have a single rate for all.

Why is this idea important?

Remove the thresholds for Stamp Duty on property sales (SDLT) and replace with a single rate for all.

I've always thought that the stepped increase in stamp duty is unfair and I have personal experience of where this causes problems. 

At present there are thresholds at £125k, £250k and £500k, and also an initiative for first time buyers (up to £250k).

Problems are caused for both buyers and sellers for property sales around the threshold point and it is also unfair as the fixed thresholds do not take account of differing proprrty prices around the country.

For example buying a house for £250k (less a penny) will mean a 1% duty = £2.5k, but buying a house for £275k will mean a 3% duty = £8.25k.

This is a huge difference for what is really just the next step along the pricing ladder.

If tax is to be made from property sales, a fair system will be to have a single rate for all.

The cost to society of stamp duty on property transactions

It is apparent to me that stamp duty has unintended side effects : 

An increase in the distance people commute, and theferefore an increase in pollution and carbon consumption.

An increase in stess and a decrease in the time people spend with their families as a result of commuting.

People change jobs more frequently than they used to, either forced or through choice.  Because of the more temporary nature of employment, it is often not worth selling and buying a new property due to the high sum paid in stamp duty.  The other alternative, to let one's property and to rent closer to your new job also has an unintended consequence : income tax is payable on the property you let.

In short, your mobility is taxed, either through stamp duty, or income tax on property income.

As a result I see many people staying in the same property, and choosing to commute long distances, instead of moving.

I understand that the government needs to raise taxes to pay for services, and that stamp duty no doubt raises a considerable sum.  I am suggesting however that the effects of stamp duty on workforce mobility be measured, and the possibility of moving the tax burden elsewhere be considered.

Why is this idea important?

It is apparent to me that stamp duty has unintended side effects : 

An increase in the distance people commute, and theferefore an increase in pollution and carbon consumption.

An increase in stess and a decrease in the time people spend with their families as a result of commuting.

People change jobs more frequently than they used to, either forced or through choice.  Because of the more temporary nature of employment, it is often not worth selling and buying a new property due to the high sum paid in stamp duty.  The other alternative, to let one's property and to rent closer to your new job also has an unintended consequence : income tax is payable on the property you let.

In short, your mobility is taxed, either through stamp duty, or income tax on property income.

As a result I see many people staying in the same property, and choosing to commute long distances, instead of moving.

I understand that the government needs to raise taxes to pay for services, and that stamp duty no doubt raises a considerable sum.  I am suggesting however that the effects of stamp duty on workforce mobility be measured, and the possibility of moving the tax burden elsewhere be considered.