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Original poster

What's the reason for stamp duty?

51 replies

Notmycircusnotmyotter · 27/07/2025 21:51

To think stamp duty is an absolute scam

Why do we have to pay huge amounts in tax just to change our home?

My father is elderly. To allow me to look after him at home, I am going to sell my family home with my two small children to buy somewhere he can fit too. It'll save the state a fair chunk in care fees. But because we're in the SE England, it'll cost me about £50k in stamp duty. Just to change upsize my family home. What the actual fuck.

OP posts:
Original poster
Notmycircusnotmyotter · 27/07/2025 22:20

Is there any legal way around it?

OP posts:
ShyMaryEllen · 27/07/2025 22:25

ConfusedSloth · 27/07/2025 21:56

It's just a tax on buying a home just like you pay tax on almost everything you buy (like VAT).

I do agree that it's unfair that it's linked to house value alone when houses vary in value so much. Someone in one part of the UK could sell their 3 bedroom house and buy another 3 bedroom house and pay no stamp duty. In a more expensive part, someone sells their 3 bedroom house and can't afford to buy another because the stamp duty is so high.

I think it should be linked to some kind of local index or should be based on the increase - i.e. if you have a £150,000 house and move to a £200,000 house then you pay stamp duty on the £50,000 difference instead of on the full amount. That way, people aren't trapped in properties when they can't afford to move.

Can that index be applied so that people in cheaper areas get some sort of grant or rebate to move to more expensive ones when ££££ don’t land in their laps just for living in their own home?

Half the country is trapped in their houses as geographical mobility is hugely affected by house price discrepancies.

Splendiddydody · 27/07/2025 22:28

It’s just another way of taxing us. I raise you inheritance tax as another unfair money grabbing scheme.

ThatLilacLurker · 27/07/2025 22:30

Im in Scotland which is generally cheaper than SE England but Edinburgh and some surrounding areas are not a million miles away in terms of pricing. Our SNP government have kindly set our stamp duty thresholds lower and raised the %. So while I dont agree with stamp duty at all, it infuriates me that we pay more up here.

Original poster
Notmycircusnotmyotter · 27/07/2025 22:31

Nope

What's the reason for stamp duty?
OP posts:
TerminalMoraine · 27/07/2025 22:40

@Notmycircusnotmyotter
Just a thought. Is your DDad going to be a part owner of the new house?
If he is that could be an issue if he needs to go into a care home at any point. The Local Authority could potentially force to you sell the house to release his hare of the property to pay for his care.

Bluevelvetsofa · 27/07/2025 22:43

How do you envisage it working if you downsize? Should you get money back on the difference between the larger house you sell and the smaller one you buy?

MidnightPatrol · 27/07/2025 22:44

It’s outrageous.

Unremarkable terraced homes across London now commanding six-figure tax bills.

On which to earn the money to pay it, you’re probably paying close to 50% tax already.

Badbadbunny · 27/07/2025 22:45

Notmycircusnotmyotter · 27/07/2025 21:59

My home is worth about £700k. A lot of it is added value from work I've done to the house. It's a terraced in a not very snazzy part of Surrey. I want to buy one around £850k. It means I'll have another double bedroom and a downstairs loo for my elderly dad. But that extra £40k in stamp duty is just 🤯

How much capital gain have you made on your current house that is tax free? Would you prefer capital gains tax rather than stamp duty?

labamba18 · 27/07/2025 22:49

SpanThatWorld · 27/07/2025 22:02

Its not a "scam". No-one is trying to pretend it is anything other than what it is.

Governments need to raise money. We might not be waging war on France but we need money to arm for future wars against current and future threats, to pay for the NHS, to build infrastructure, to fund care and pensions and everything else that the state does.

Tax has to be raised from somewhere. This is just another one of those ways.

I think that the problem is that the money isn’t being used wisely. There’s a lot of waste. I wouldn’t mind paying stamp duty if it did go to the right places and improve the lives of others.

Original poster
Notmycircusnotmyotter · 27/07/2025 22:52

@TerminalMoraineno, he won't be part owner, it will be mine and the money comes from me not him so there are no issues with deprivation of assets. He doesn't have them to deprive frankly and I'm not in this for a nicer house but because mine doesn't have a downstairs loo or a second large bedroom that would fit his needs without kicking me out of mine.

@BadbadbunnyI've probably increased the value by £50k on mine as a result of redecorating, changing the layout, new windows etc. We only moved in 2 years ago (before my dad went downhill) so it hasn't gained value just for existing.

OP posts:
TotHappy · 27/07/2025 22:52

How does it work - is it on the house you sell or the house you buy? I'm in the first house we bought and we didn't pay any (do first time buyers not pay?) But we will need to move sometime and it's making me nervous. Do you have to have the sum in cash or can it be part of your mortgage/deposit I.e. you take it out of your house sale proceeds?

Original poster
Notmycircusnotmyotter · 27/07/2025 22:53

@TotHappyim not sure of current rules but there have been periods when first time buyers don't pay and if the property is under a certain value you don't pay.

OP posts:
Original poster
Notmycircusnotmyotter · 27/07/2025 22:57

@labamba18yup, if I felt the government wasn't spaffing money away while increasing taxes exponentially it might not sting quite as much

OP posts:
Fluffyowl00 · 27/07/2025 23:01

I think in Spain it’s 12% if you sell your house (hence why so many families keep homes in the family). So it could be much worse.

Fluffyowl00 · 27/07/2025 23:03

The best thing would be if you didn’t pay stamp duty to downsize, not o guess they would be hard to administer

Plinketyplonks · 27/07/2025 23:09

When we bought in Scotland in 2024 the stamp duty was double the amount we’d have paid on the same priced house in London. Bloody painful!

IZK · 27/07/2025 23:14

Notmycircusnotmyotter · 27/07/2025 22:31

Nope

I put in 850k as that's what you said you wanted to buy one around the price of.

PatsFruitCake · 27/07/2025 23:16

I agree it's a ridiculous way of raising tax. I'd rather pay more income tax. We're thinking about buying a new house and the stamp duty is really off putting. The government deterring people from moving house is daf.

CurlyhairedAssassin · 27/07/2025 23:46

Iheartlibrarians · 27/07/2025 22:08

What @SpanThatWorld said.

Also, you don't pay it on the first £125K, and then it's 2% up to £250K, and 5% up from there to £925K.

So if you're buying a house worth £850K, you'd pay £32.5K, not £40K.

Edited

I think as of 2022 it's 0% on the first 250k. 5% on anything over 250k up to 925k.

CurlyhairedAssassin · 27/07/2025 23:47

Oh hadn't realised it had changed again since April, sorry. That's rubbish.

Sundaybananas · 27/07/2025 23:53

And it’s a disincentive to downsizing too.

ThisTicklishFatball · 28/07/2025 00:27

I don't have much to add other than to say I agree and support you, OP. It's outrageous that you're already paying tons of taxes and will continue paying even after death for property held in life. You're already giving far too much of your money to the government, and they keep wanting more and more. Why can't a single property tax be eliminated, especially one that makes it so difficult for people who aren't wealthy to move to a more suitable house?

I also have to mention that the way you talk about your dad is very lovely.

Asosbabe · 28/07/2025 06:45

There are some advantages to living in Scotland. Not having to pay university fees, free social care if you need it, free prescriptions. Stamp duty is ridiculous here but I guess those are some of the things it gets spent on