Stamp Duty

Chippy_boy

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What a nasty, pernicious and stupidly counter-productive tax that is.

It's been 21 years since I moved house and I am not planning on moving any time soon, so I have no horse in this race. But recently I had cause to take a look at it. The rates people with larger properties are being charged should they wish to move, are just obscene.

Did you realise that the stamp duty rate on property value above £925k is 10%??? And 12% on properties over £1.5m. 10% or 12% of their ALREADY TAXED income?

I don't own a house worth anything like these amounts and could not move into one either, so I could say it's no skin off my nose. But these are STUPID amounts of money IMO. Someone wanting to buy an e.g. £1.25m house has to cough up £66,250 in stamp duty alone??? This is bonkers. A high earner perhaps had to earn nearly double that, pre-tax, so maybe £120,000 of your gross earnings, taken off you, just to move house? Insane.

You might argue that people buying that sort of property have money to burn, but that is far from the case. Putting aside the fact that hardly anyone has "spare" money to burn, many people are simply moving from one house to a slightly different one. Maybe a bit bigger, maybe a bit smaller, perhaps in a different area. Yet they are effectively FINED for doing so.

What a stupid policy that is. I've not moved house many times, but every time I have, it's meant endless trips to B&Q buying god knows what; new carpets; curtains; plants and gardening gear; paint; maybe some furniture. Perhaps you get the kitchen or bathroom re-done and god knows what else. Tens of thousands spent, generating income for local suppliers, who also pay their taxes. In short, moving house is a GOOD THING for the economy. And of course a flexible and MOBILE labour market is good for the economy generally. But instead we fine people for the temerity of actually wanting to move house?

I wonder how many elderly people are sitting on larger properties and would be quite happy to downsize, but don't have a spare £30k (or whatever) in cash that they want to bung the taxman? How many people are put off taking a better job and moving house because of the offensive stamp duty charges?

If I was in charge and making changes, stamp duty would be perhaps the very first tax I'd be taking a look at. I think it's a dreadful tax.

EDIT: It's also a tax I find it hard to think of any moral justification for. If someone owns a house worth (say) £650,000 and they want to move to another house also worth £650,000, why on earth should the taxman be receiving any more at all from such a transaction? What possible justification for such robbery is there?
 
What a nasty, pernicious and stupidly counter-productive tax that is.

It's been 21 years since I moved house and I am not planning on moving any time soon, so I have no horse in this race. But recently I had cause to take a look at it. The rates people with larger properties are being charged should they wish to move, are just obscene.

Did you realise that the stamp duty rate on property value above £925k is 10%??? And 12% on properties over £1.5m. 10% or 12% of their ALREADY TAXED income?

I don't own a house worth anything like these amounts and could not move into one either, so I could say it's no skin off my nose. But these are STUPID amounts of money IMO. Someone wanting to buy an e.g. £1.25m house has to cough up £66,250 in stamp duty alone??? This is bonkers. A high earner perhaps had to earn nearly double that, pre-tax, so maybe £120,000 of your gross earnings, taken off you, just to move house? Insane.

You might argue that people buying that sort of property have money to burn, but that is far from the case. Putting aside the fact that hardly anyone has "spare" money to burn, many people are simply moving from one house to a slightly different one. Maybe a bit bigger, maybe a bit smaller, perhaps in a different area. Yet they are effectively FINED for doing so.

What a stupid policy that is. I've not moved house many times, but every time I have, it's meant endless trips to B&Q buying god knows what; new carpets; curtains; plants and gardening gear; paint; maybe some furniture. Perhaps you get the kitchen or bathroom re-done and god knows what else. Tens of thousands spent, generating income for local suppliers, who also pay their taxes. In short, moving house is a GOOD THING for the economy. And of course a flexible and MOBILE labour market is good for the economy generally. But instead we fine people for the temerity of actually wanting to move house?

I wonder how many elderly people are sitting on larger properties and would be quite happy to downsize, but don't have a spare £30k (or whatever) in cash that they want to bung the taxman? How many people are put off taking a better job and moving house because of the offensive stamp duty charges?

If I was in charge and making changes, stamp duty would be perhaps the very first tax I'd be taking a look at. I think it's a dreadful tax.

EDIT: It's also a tax I find it hard to think of any moral justification for. If someone owns a house worth (say) £650,000 and they want to move to another house also worth £650,000, why on earth should the taxman be receiving any more at all from such a transaction? What possible justification for such robbery is there?
Maximum 4% when Labour left office...
 
I wonder how many elderly people are sitting on larger properties and would be quite happy to downsize, but don't have a spare £30k (or whatever) in cash that they want to bung the taxman?
Your FOC who flogs his £500k house and buys a £150k flat ends up with £350k in the bank - buyer pays SDLT and under £150k is exempt if it’s your primary gaff.
 
This Tory government is currently on track to be the biggest tax-increasing parliament since comparable records began.
And obviously had Labour been in charge all this time, then the war in Ukraine and COVID would never have happened. Silly me.

I forgot only Labour have a money tree.
 
And obviously had Labour been in charge all this time, then the war in Ukraine and COVID would never have happened. Silly me.

I forgot only Labour have a money tree.
Annual tax receipts went up about 30% under the last ten years of Labour government and by about 50% in the ten years of the Tory / LibDem coalition and Tory governments, before Covid.
 
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In 2021 there were over 25m homes in England and Wales. In 2023 Savills the estate agents said there were just over £730k homes worth over £1m. Oh why oh why do we penalise the rich so much why do we make them contribute their share of taxes?
Also - in the scenario of the OP yes the purchaser has already been taxed on income but its the seller who has gained wealth off of nothing and the purchaser that should things stay the same will also benefit in an increased value of the home just because it is what it is where it is. Luck - not earned.
Finally - if you earn money and pay tax on those earnings should we not apply this scrutiny to say petrol on which you pay VAT and duty - or a pint down the local which I pay for with already taxed income but pay more tax on top. Too simplistic a view to look at one tax and say thats not fair it need an overview of the whole system to judge it.
 

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