Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Another Stamp duty freeze/cut?

117 replies

Designhelp · 21/09/2022 12:25

Would like to know if anyone has any more info in this? Appreciate likely to be speculation at this point.

www.theguardian.com/politics/live/2022/sep/21/liz-truss-stamp-duty-cut-emergency-budget-uk-politics-live#comments

OP posts:
MarianneVos · 21/09/2022 15:03

How did it work last time? If the limit is raised to 500k, would this mean it wouldn't affect a transaction of 550k or 900k, or if the amount paid would be reduced?

Original poster
Designhelp · 21/09/2022 15:19

@MarianneVos

I think you would get the reduction fir the proportion under the 500k so still a reduction.

OP posts:
foodislife1 · 21/09/2022 15:37

How did it work last time? What if we've recently exchanged/completed? Hope it applies to all sales within 7 days!

Octomore · 21/09/2022 15:38

EmmaH2022 · 21/09/2022 14:39

But for buying a property, you already pay VAT on conveyancing and EA fees if you're selling. SDLT is different.

re extensions, you mean VAT to the builder? That's also VAT. I'm not objecting to VAT.

Show quote history

VAT on conveyancing services is tiny though, in the context of the value of a house sale transaction. And it relates to the service provision, not the purchase. You pay for the services rendered even if the sale falls through.

Transactions attracting tax isn't exactly a weird or unusual concept, most countries do it in some form. Stamp taxes also apply to thing like share purchases etc. I'm intrigued as to why anyone would think that houses should be a special case.

Doubleraspberry · 21/09/2022 15:39

We are in conveyancing now, so waiting to see whether our purchase (in the 500-925 bracket) is affected. I don't particularly approve of cutting SD right now given the likely inflationary effect, but like pretty much everyone in the world, would not object to having a bit more money at a time when every penny I own is getting tunnelled into the house buying process.

We certainly wouldn't ask our buyers to pay more than the agreed purchase price now, and I can't imagine our seller would do either, but I can see why people might be worried that this could happen in some cases before exchange.

Octomore · 21/09/2022 15:42

Nw22 · 21/09/2022 14:38

@Octomore why should you pay 20k of tax just because a 2 bed terrace now costs over 500k in some areas?

You know that the SDLT thresholds have risen over time, yes?

When I bought my first house the threshold was £60k, and the average FTB house cost more than that threshold, even in the north of England.

TuesdayBliss · 21/09/2022 15:43

JesusInTheCabbageVan · 21/09/2022 13:13

I just heard on LBC that it's expected to be announced on Friday. Good for us personally, as we've just put our house on the market. Bad news for a lot of people though, feel especially bad for those who bought in that tiny window in between.

A few people we're forecasting a dip in house prices next year, so I guess this is the standard Tory knee jerk reaction.

I think the people who bought in the past year should have the SD refunded.

Octomore · 21/09/2022 15:44

This tax isn't about fairness - it's about stimulating the market

Transactions that happened in the past year do not need to be stimulated because they've already happened

Octomore · 21/09/2022 15:46

Similarly, if the income tax rate gets reduced, people who paid income tax last year wouldn't get a rebate.

That's just not how it works.

OttilieKnackered · 21/09/2022 15:48

Well that’s a negative take on it, yes. My seller is offloading a rental and looking for a quick sale so I think it’s probably unlikely, but given the way it’s all gone, it would be just our luck.

I hope this one thing does go in our favour!

Octomore · 21/09/2022 15:50

OttilieKnackered · 21/09/2022 15:48

Well that’s a negative take on it, yes. My seller is offloading a rental and looking for a quick sale so I think it’s probably unlikely, but given the way it’s all gone, it would be just our luck.

I hope this one thing does go in our favour!

It will obviously depend on specific circumstances, but gazumping isn't exactly a rare or unheard of thing unfortunately. Many sellers would consider their options if they thought they could make an extra £10k or £20k.

Interventions like this do, unfortunately, trigger some pretty crazy behaviours.

Octomore · 21/09/2022 15:51

But I do hope your purchase goes smoothly! Buying houses is stressful enough.

TuesdayBliss · 21/09/2022 15:55

Octomore · 21/09/2022 15:44

This tax isn't about fairness - it's about stimulating the market

Transactions that happened in the past year do not need to be stimulated because they've already happened

Lol you don’t need to underline things like I’m an imbecile. I’m not so daft as to think that it’ll happen. But morally, I think it should.

hannahcolobus · 21/09/2022 16:19

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

MarianneVos · 21/09/2022 16:20

Designhelp · 21/09/2022 15:19

@MarianneVos

I think you would get the reduction fir the proportion under the 500k so still a reduction.

Ah thanks. I'm supposed to be exchanging this week, not sure whether to just go ahead regardless in case it gives our seller second thoughts, or to hold off as could really do with having the extra money to fix stuff in the new place!

MarianneVos · 21/09/2022 16:21

Designhelp · 21/09/2022 15:19

@MarianneVos

I think you would get the reduction fir the proportion under the 500k so still a reduction.

Ah thanks. I'm supposed to be exchanging this week, not sure whether to just go ahead regardless in case it gives our seller second thoughts, or to hold off as could really do with having the extra money to fix stuff in the new place!

Beach1983 · 21/09/2022 16:31

@foodislife1 omg me too! We exchanged yesterday and this would be amazing if it took effect from Friday, even a slight reduction would be great for us 🤞

TuesdayBliss · 21/09/2022 16:35

This reply has been deleted

This has been withdrawn by MNHQ at the poster's request.

Sadly not - due to the market we had no choice but to buy 30% higher than the property sold for two years prior, plus stamp duty!

GraceJonesBiggestFan · 21/09/2022 17:26

Would it take effect immediately? I’m torn to be honest. I think it’s fundamentally the wrong thing to do, as it’s just propping up something artificially inflated and in 2020 all it did was artificially inflate prices to a ridiculous level (in Devon they increased by 19% in a year!) and we were gazumped twice 😪However, I’m ashamed to admit that selfishly, as we’re close to exchanging on our third property and have had to massively struggle to afford somewhere since prices went bananas, I’d appreciate the extra £7k.

mumda · 21/09/2022 17:48

My cousin has a house on her street for rent at 3500 a month. Manchester M35. Nothing glamourous at all. With rents like that the prices are only going one way.

Roomytrouser · 21/09/2022 18:04

Yes and those who can afford to buy without having to cope with the increased rate of borrowing may well be quids in all round

Cattenberg · 21/09/2022 18:08

My purchase has been massively delayed (my offer was accepted in July 2021), so I’d love to be let off Stamp Duty. I’ve been screwed over by the rise in interest rates through no fault of my own. My original mortgage offer had an interest rate of 1.69%. My current one will be 3.8% and I’ve ended up having to pay the mortgage arrangement fees twice.

Roomytrouser · 21/09/2022 18:13

With interest rates rising around the world and the UK government planning such a large increase in borrowing, UK interest rates need to provide an suitable return to maintain investment. They’re not going down any time soon.

hannahcolobus · 21/09/2022 18:16

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

FTBlookingforadvise · 21/09/2022 18:21

Have also posted this on a different thread but also posting here in case as this thread seems more active:

Hello, I'm a FTB and wondering if anyone could offer advice. I'm due to complete tomorrow - Thursday 22nd (have exchanged) and in light of the speculation on a possible stamp duty change on Friday have raised the prospect of moving the completion date to Friday. The seller is open to this but there is a complication in that the property is not their primary residence so CGT is due. Effectively they have said we can agree to move the completion date to Friday but on the condition that I indemnify them in the event of any changes to CGT taking immediate effect or any other punitive charge. My feeling is that it's not worth taking the risk but would be interested to hear any opinions on what you'd do in this situation? As I said I'm a FTB so could really do with any reduction in tax but at the same this seems highly risky. Thanks in advance