Stamp duty

[Onelife]

We are looking to move house next year and as a consequence l have been looking at cost implecation. ....little had l realised that stamp duty has been increased such that if we purchase in the price range we were thinking then it's going to cost us in the region of £17,500 in stamp duty. Am l missing something here? I always thought robbers were put behind bars? If that is the case then what the hell is X chancellor Osborne doing on the loose? If there ever was an unfair tax then stamp duty must sit right up there with the worst of them.

I was under the impression that the government were trying to kick start our flagging housing market??

Anyhow's.....do any of you think Hammond will have a stamp duty readjustment in the near future especially as there doesn't appear to be rush of first time buyers that are financially able to get onto the housing ladder?

Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

For those of you who wish to purchace additional house/s you must be feeling pig sick (if l have read it right) as you will have to find 3% extra on top of the figures above.

Any thoughts?

[david63]

Not sure if you have done your sums correctly but £17.5k stamp duty would only be paid on a property in excess of £500k.

Stamp duty is nothing new and the current rates are actually less than the previous rates for the average house (excluding the London area)

[Stephen]

It's the biggest cost when moving Keith. Getting the removers in is the cheap bit, a couple of grand.

I done a costing a couple of years ago, and what with legal, moving and stamp duty fees we would be looking at 20K to move. And that's before any extra's that come with moving such as carpets, curtains, any modernisation...etc etc.

By the way, I'm assuming (hoping) you are moving further North

Stamp Duty Rates

https://www.gov.uk/stamp-duty-land-tax/ ... erty-rates

[Onelife]

Not sure if you have done your sums correctly but £17.5k stamp duty would only be paid on a property in excess of £500k.

Stamp duty is nothing new and the current rates are actually less than the previous rates for the average house (excluding the London area)

Thanks David.....that'll teach me for not doing my own sums and instead listening to my best mate.

I was led to believe it was 5% of the whole sum...right I'm off to the bookies as I've got 10k to play with..Oops!

Regards

Keith

[Onelife]

It's the biggest cost when moving Keith. Getting the removers in is the cheap bit, a couple of grand.

I done a costing a couple of years ago, and what with legal, moving and stamp duty fees we would be looking at 20K to move. And that's before any extra's that come with moving such as carpets, curtains, any modernisation...etc etc.

By the way, I'm assuming (hoping) you are moving further North

Stamp Duty Rates

https://www.gov.uk/stamp-duty-land-tax/ ... erty-rates

And my wife thought she had retired....she'll be back in work before the weeks out.

Kinda lost touch with all this house moving malarkey Stephen, but thanks for making me even more depressed

[Onelife]

Hi David....I was going to ask you to remove my thread but as George Osborne is a robbing Bar steward and stamp duty is an unfair tax l'm happy for you to leave it.

Talking about 'tax' l've never got my head around why we don't just have one tax that dose away with the need for all other taxes....seems a more sensible approach to me?

[oldbluefox]

And there was I thinking you were really Lord Onelife and were moving into your Mayfair pad.

[towny44]

Hi David....I was going to ask you to remove my thread but as George Osborne is a robbing Bar steward and stamp duty is an unfair tax l'm happy for you to leave it.

Talking about 'tax' l've never got my head around why we don't just have one tax that dose away with the need for all other taxes....seems a more sensible approach to me?

Not sure its a good idea for pensioners who don't pay national insurance, which makes up 20% of total tax income for the govt. , and also do not contribute anywhere near the average on a number of other taxes. So please do not suggest this idea to our new chancellor.

[Onelife]

Hi David....I was going to ask you to remove my thread but as George Osborne is a robbing Bar steward and stamp duty is an unfair tax l'm happy for you to leave it.

Talking about 'tax' l've never got my head around why we don't just have one tax that dose away with the need for all other taxes....seems a more sensible approach to me?

Not sure its a good idea for pensioners who don't pay national insurance, which makes up 20% of total tax income for the govt. , and also do not contribute anywhere near the average on a number of other taxes. So please do not suggest this idea to our new chancellor.

Hi towny....I haven't a clue which sections of the public pay what into the exchequer but what I do know is that the present tax system needs a complete overall. The complexity of administering such a system has got so out of control that that government is having to create more taxes in order to stem the flow of revenue that is being lost through poor administration, fraud and shady accountants

I may be wrong but to my mind simplifying the tax system by having one tax which covers areas of tax which could be amalgamated together seems to me not a silly idea.

Regards

Keith

[Onelife]

And there was I thinking you were really Lord Onelife and were moving into your Mayfair pad.

Hi foxy... I've got a wife who loves me, a daughter that loves me and a dog that loves me more...I am indeed a very rich man

Btw...I sold the mayfair pad for one in a more rural setting...

...you just have to avoid the sheep sh*t getting to it.

[Boris+]

You are completely and utterly correct about that extra 3%.

[LindaK]

Hi I'm new here so hope I'm not intruding. In the process of moving myself so have had to get my head around the tax implications. It seems that in the past, over £125k Stamp Duty was payable on the whole amount, but it's now only on the percentage above £125k, so the average house purchase is actually cheaper than before. Also, while it's true that buying a second property is an extra 3% on top (if buying the next place before selling the first for instance) you can claim it back if you sell the original one within 3 years

[oldbluefox]

Welcome to the forum LindaK. Do feel free to join in.

[Stephen]

And a warm welcome from me

[barney]

Hi Linda and welcome to the forum.

You are correct in your figures but as there is nothing in my area for anywhere near 125k and the tax is graduated, it's very much dearer in the SE.
The average 3 bed semi around us is in excess of 300k, sometimes far more than that.
My brother has just sold his Victorian 4 bed in Gravesend for £475 and is buying down as the kids have all flown.

Another tax that many will not be aware of that is currently going through Parliament is a graduation of the Probate fee.
At the moment it is a fixed £220 but is changing to reflect the size of the estate.
The proposal is varied but they are looking at around £5k to £50K free of charge as a sweetener but progressive thereafter to 8K for an estate valued at about 400K.
Then, depending on the estate, up and up.
That's a huge jump and has to be found up front, before the deceased's estate can be wound up.

My advice is spend it !!!!

[Frank Manning]

Thanks for that encouraging news Barney. I think perhaps we should book several Regent Seven Seas cruises, and have that new Merc I keep eyeing enviously in the showroom.

Either way it is still an iniquitous tax, and deters people like us from down sizing. That and the lack of suitable properties in which to downsize.

Sue drives me crazy on Rightmove "come and have a look at this one!"

[Stephen]

How about downsizing to a nice little detached number Frank.

luxury-swiss-cottage-tent.jpg

[GillD46]

Down sizing meant this house actually cost us more than the price we sold at, which was twice the size. Then the £100,000+ we had to spend bringing it up to our standard after we moved in!

My advice - stay where you are!

[oldbluefox]

Either way it is still an iniquitous tax, and deters people like us from down sizing. That and the lack of suitable properties in which to downsize.

You could always move north.....................................
We'd look after you even though we know you southern softies do feel the cold!!!!

[Stephen]

Either way it is still an iniquitous tax, and deters people like us from down sizing. That and the lack of suitable properties in which to downsize.

You could always move north.....................................
We'd look after you even though we know you southern softies do feel the cold!!!!

MOVE NORTH ........cough, splutter. Don't say things like that Foxy, you had me reaching for my blanket and brandy.

[LindaK]

Oooh it's been such a sheltered life down in the West Country. Hearing the gloom I have already hidden under the blanket ... taking the brandy with me!
You're right though - may as well spend it.
Thanks for the kind welcome

[Frank Manning]

Down sizing meant this house actually cost us more than the price we sold at, which was twice the size. Then the £100,000+ we had to spend bringing it up to our standard after we moved in!

My advice - stay where you are!

Can I quote you to Sue, Gill?

We have 4 bedrooms and a conservatory where I do my paintings. We have just spent £7,000 on an new en suite shower room. Sue keeps looking at 2 bed bungalows with no shower, no built in wardrobes, and no garage, which need a fortune spending on them, are in the wrong place, and have nowhere I could paint.

I am planning on sticking it out here, even if I have to get a Stannah, a ramp up to the front door, and have a seat in the shower in the future.

[GillD46]

By all means! Had we not been unhappy because of the weather where we were, high above sea level, we would never have left our fabulous house. Here we do get bad weather, but it comes and goes, there it came and stayed! For days on end!

It was ridiculous having a very large four bedroom, four bathroom house, just for two of us really. But I do miss it.