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Original poster

Liz Truss stamp duty announcement

181 replies

Puncturedbicycle85 · 21/09/2022 08:35

I have seen that LT intends to cut stamp duty and will announce it this week. Does anyone know how quickly this will be brought in? I can’t remember how fast it was brought in when it was cut during the pandemic.

OP posts:
towelhammer · 22/09/2022 23:01

you just watch the IHT rise over the next few years. The threshold is frozen until 26 in case you didn't know.

Yes fully aware it's frozen

towelhammer · 22/09/2022 23:02

Yes you can give your house to your kids and then remain and pay the market rent and if you survive 7 years and you don't need social care you might get away with it.

It's an option but the vast majority don't need to do this because they aren't liable in the first place.

walkingonsunshinekat · 23/09/2022 08:42

Luckydip1 · 22/09/2022 20:44

@walkingonsunshinekat You are missing the point, it's a tax on moving home. Most London homes are now in the 12% stamp duty bracket. Why would you ever move unless you were forced to.

Err who moves because they don't want too?

The average London house is around 600k, thats 20k in SD, 3.33% duty, even on a £1m house, its 43k or 4.4%

I don't think you have a clue what your talking about...12% lol!

Mooserp · 23/09/2022 10:09

So the announcement is no stamp duty charged on 1st £250k. But what is the charge over that? Does it go straight to 5%?

vinoandbrie · 23/09/2022 10:10

Hi @Mooserp I’m wondering exactly the same thing!

towelhammer · 23/09/2022 10:12

What's the FTB relief?

towelhammer · 23/09/2022 10:12

I have assumed it jumps to 5%

girlmom21 · 23/09/2022 10:12

towelhammer · 23/09/2022 10:12

What's the FTB relief?

You don't pay stamp as a first time buyer

MrsTwentyNine · 23/09/2022 10:13

Gov uk have updated it with the new rules!

vinoandbrie · 23/09/2022 10:14

Ah yes I see, straight to 5%

balalake · 23/09/2022 10:14

My view is that it should be paid by the seller.

towelhammer · 23/09/2022 10:15

@girlmom21

I'm confused because it says FTBs threshold has increased to 425k but relief is 600k. Does that mean FTB pay nothing up to 600k? My sister is trying to buy as a FTB

Mooserp · 23/09/2022 10:15

MrsTwentyNine · 23/09/2022 10:13

Gov uk have updated it with the new rules!

I was just checking! 😄

So it's 5% over £250k. Saving £2,500.

I'm actually pleased it's not a huge change, hopefully won't send the housing market bonkers

MrsTwentyNine · 23/09/2022 10:17

@Mooserp exactly especially down south with the overly inflated market, I hope not much changes ! Barely save anything on our completion but still!

Mooserp · 23/09/2022 10:17

towelhammer · 23/09/2022 10:15

@girlmom21

I'm confused because it says FTBs threshold has increased to 425k but relief is 600k. Does that mean FTB pay nothing up to 600k? My sister is trying to buy as a FTB

It is £625k)

It means you can only take advantage of the FTB rates if the purchase price is under £625k

towelhammer · 23/09/2022 10:18

@Mooserp sorry 625k

onthefencesitter · 23/09/2022 10:18

towelhammer · 23/09/2022 10:15

@girlmom21

I'm confused because it says FTBs threshold has increased to 425k but relief is 600k. Does that mean FTB pay nothing up to 600k? My sister is trying to buy as a FTB

You pay no stamp duty on first 425k, you pay stamp duty on the remaining £150k.

I believe relief is for properties up to 625k

towelhammer · 23/09/2022 10:19

her budget is 600k so good for her

TerrazzoChips · 23/09/2022 10:22

Does anyone know what impact, if any, this will have on buying a second home? I’ve a small flat in London I’d like to rent out for a few years as my jobs moved up north and there’s hardly any houses available to let where I’m moving to!

Shitfather · 23/09/2022 10:54

I think this is good news to keep the London market in check above 625k. I’ll be purchasing as a FTB above this price and would rather pay stamp duty than buy in a frenzied market had there been no cap on purchase price.

TheSmallestOneWasMadeline · 23/09/2022 11:03

Does anybody know if you will benefit from this if you are completing today (any time now in fact)?

towelhammer · 23/09/2022 11:06

I think this is good news to keep the London market in check above 625k

will it do that?

I’ll be purchasing as a FTB above this price and would rather pay stamp duty than buy in a frenzied market had there been no cap on purchase price.

I think it will still push up prices

Shitfather · 23/09/2022 11:09

@TheSmallestOneWasMadeline you can go to the government’s official SDLT calculator. Updated thresholds as of today.

Shitfather · 23/09/2022 11:12

towelhammer · 23/09/2022 11:06

I think this is good news to keep the London market in check above 625k

will it do that?

I’ll be purchasing as a FTB above this price and would rather pay stamp duty than buy in a frenzied market had there been no cap on purchase price.

I think it will still push up prices

Why though? There is 0 relief if your purchase price is above 625 and you are a FTB. For a property worth 1million, I’ll be paying 43k SD. There is some saving upto 250k.

JamesBondOO7 · 23/09/2022 11:12

This Truss is f-ing everyone up as prices will shoot especially towards the end of the stamp duty cut as did last time - this in turn will further increase inflation.

The country is on her knees and this mini budget will make it worse just watch inflation rates in a few months time as well as mortgage rates.

Lame truss's excuse this will help those paying a mortgage, if you think that is ture then I have nothing else to add, lol