Has anyone seen this article regarding stamp duty?

[Beaniebeemer]

Do you think it will be implemented?

www.bbc.co.uk/news/business-39139128#share-tools

[ShortLass]

Unlikely in the near future.

Although a man came round to quote for my windows said that a lot of householders are deciding to stay put and do home improvements rather than move because of the cost of stamp duty.

[Smidge001]

Yes I read it. It seems daft to me, totally ignoring market forces. If the seller has to pay stamp duty and the buyer doesn't, all it will mean is the seller will ask for a higher price!! The buyers who could have afforded the stamp duty in the current world will be able to pay the higher price asked by the seller. Overall effect is nothing. Pointless.

[notgettingyounger]

Noooooo! We paid fortunes in SD on our purchases. I don't want to have to pay it again when we sell to downsize!

More seriously, I guess the point is an indirect sidestep of the bank lending criteria. If the price of the house is, say £1,043,750 including SD then the borrower will presumably be able to borrow 85% or 95% or whatever of the inclusive figure whereas if the house iss priced at £1m PLUS SD of £43,750 then the buyer will only be able to borrow 85% or 95% or whatever of the £1m, and will then need to find another lump sum for the SD. It puts bank's assets more at risk because the new owner (where the bank's security lies) immediately owns an asset worth potentially less than the mortgage (if the house is over about £1.5m and the mortgage is significant), and certainly less than they paid for it. Seems crazy. Loosen bank lending criteria openly if that is the right thing to do. Don't bring it in by the back door.

[minipie]

It's not a wholly stupid idea. I've long thought that we ought to pay capital gains tax on gains made when we sell property (much fairer than stamp duty when we buy). The problem as ever is how to ensure fairness during the transitional period, to people who haven't planned for that tax.

I doubt any sort of property sale tax will ever be implemented though and especially not by the Tories. Property owners, and particularly downsizers who'd be hit most, are their core voters.

[Kiroro]

minipie I very much agree with your post - people have treated property like investment but haven't been taxed like an investment for many years.

No way a capital gains style tax will be implemented tho!

[minipie]

It's particularly ridiculous Kiroro because your property is about the only thing you can put money into where you won't be taxed on the gain. Any other investment you pay CGT. So the current PPR exemption encourages people to see their house as an investment rather than as a home.

Various other countries do pay tax on any gains when they sell their home, I believe. In France for example you pay tax on any gains (less amounts you can prove you spent on improvements/repairs and notary/lawyer fees)