FabSwingers.com forum: Stamp duty

By *0shadesOfFilth OP Man
11 weeks ago

nearby

An additional 21% of first-time buyers in England face paying Stamp Duty when a freeze on thresholds is removed at the beginning of April. This is according to estimates from Leeds Building Society.

Currently, first-time buyers pay stamp duty on homes costing more than £425,000 but from 1 April that will reduce to £300,000.

The society assessed 2024 market-wide mortgage data and projects that an additional 59,400 annual home purchases are projected to become subject to the tax in England, alongside 43,000 purchases where taxes will be higher.

People buying rental properties will be paying the basic stamp duty rate plus 5% surcharge (reeves increased this from 3% to 5%).

That’s a significant upfront cost in the face of a shortage of rental housing and those in the serviced accommodation/airbnb space, the UK hospitality and tourism sector, which includes self-catering, employs around 3 million people and contributed £66 billion to the economy

Why hasn’t the government extended the first time buyer stamp duty freeze and increased costs for investors.

Builders not blockers Starmer said.

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By *otMe66Man
11 weeks ago

Terra Firma

Stamp duty is a large overhead that we could manage so much better and increase revenues at the same time.

If stamp duty was spread over the lifetime of the mortgage, linking it to the mortgage % rate, and paid yearly the initial payment would be considerably lower but the overall return to the government would be approx 58% increase in revenue.

For example.

House 400K from April the stamp duty would be £10,000 one off payment.

Stamp duty spread over life of mortgage 25 years, tied to mortgage interest rate 4%.

Yearly payment £634 total paid £15873.

This would provide an extra £5873 of tax with no hard shocks to the buyer.

This would ease the burden on house purchase costs allowing more affordability and increase government revenue.

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By *melie LALWoman
11 weeks ago

neverland

From tomorrow:

£0-£125,000 (£300,000 for most first-time buyers) = 0%

£125,001-£250,000 = 2%

£250,001-£925,000 = 5%

£925,001-£1.5m = 10%

£1.5m+ = 12%

What is an average house these days? £300,000? I like to see fairer duties for average and below (I know prices vary according to location) 1.5%

3-600,000 3%

Then 6% up to 900,000 and keep the rest.

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By *roadShoulderzMan
10 weeks ago

East Hampshire

"Stamp duty is a large overhead that we could manage so much better and increase revenues at the same time.

For example.

House 400K from April the stamp duty would be £10,000 one off payment.

Stamp duty spread over life of mortgage 25 years, tied to mortgage interest rate 4%.

Yearly payment £634 total paid £15873.

This would provide an extra £5873 of tax with no hard shocks to the buyer.

This would ease the burden on house purchase costs allowing more affordability and increase government revenue. "

But you are ignoring two issues:

1) Governments want your taxes ASAP. That's why SDLT has to be paid within 14 days of the transaction. Why would any government want tax to be deferred into a period when the opposition might benefit?

2) You haven't factored in inflation. In your example if annual inflation is 4% then the amount repaid would be less than the present value of £10,000.

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By *uffelskloofMan
10 weeks ago

Lunenburg, Nova Scotia

I’d scrap stamp duty altogether. That and inheritance tax.

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