Conservatives reveal final tax cut
Discussion
The Conservatives have revealed their final tax cut.
They will raise the threshold that stamp duty is paid on house purchases from £120K to £250K. At that level virtually all starter homes will be exempt from stamp duty.
All in all I think a good area for tax cuts.
>>> Edited by JagLover on Friday 22 April 16:19
They will raise the threshold that stamp duty is paid on house purchases from £120K to £250K. At that level virtually all starter homes will be exempt from stamp duty.
All in all I think a good area for tax cuts.
>>> Edited by JagLover on Friday 22 April 16:19
Brilliant idea, I'm surprised students and graduates aren't more interested in the Tories, after all, they'd really get rid of tuition fees, and make it easier for you to buy a house.
But no, they all vote for the Lib Dems, who would get rid of some people's tuition fees, hike others up, Local Income Tax would ensure that first time buyers end up in the worst areas with unsaleable houses, then they get walloped for aspiring with the Graduate Tax that the Lib Dems have been quiet about - essentially a tax that 'pays' for universities by essentially penalising those people who it has helped into a good job.
But no, they all vote for the Lib Dems, who would get rid of some people's tuition fees, hike others up, Local Income Tax would ensure that first time buyers end up in the worst areas with unsaleable houses, then they get walloped for aspiring with the Graduate Tax that the Lib Dems have been quiet about - essentially a tax that 'pays' for universities by essentially penalising those people who it has helped into a good job.
Duncan23 said:
Local Income Tax would ensure that first time buyers end up in the worst areas with unsaleable houses
I don't understand this statement. Care to explain? The rest makes sense...
Under a local tax-the young who are well paid, who are either staying in rental accomodation or at home, will be penalised and will find it more difficult to save up for a deposit.
JagLover said:
Twincam16 said:
Local Income Tax would ensure that first time buyers end up in the worst areas with unsaleable houses
I don't understand this statement. Care to explain? The rest makes sense...
Under a local tax-the young who are well paid, who are either staying in rental accomodation or at home, will be penalised and will find it more difficult to save up for a deposit.
There you go, what he said.
JagLover said:
The Conservatives have revealed their final tax cut.
They will raise the threshold that stamp duty is paid on house purchases from £120K to £250K. At that level virtually all starter homes will be exempt from stamp duty.
All in all I think a good area for tax cuts.
>>> Edited by JagLover on Friday 22 April 16:19
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
NorthernBoy said:
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
Stamp duty has a large impact on house prices around its thresholds, but I have seen no data that lifting the starting band to 250K will result in house price inflation. What it will do is return stamp duty on housing to its previous level in relation to prices. At one time 60K or under could get you a starter home-now in the south you need 160-250K.
Ideally Stamp duty on houses would be abolished altogether because it is a tax on the free movement of labour.
NorthernBoy said:
The Conservatives have revealed their final tax cut.
They will raise the threshold that stamp duty is paid on house purchases from £120K to £250K. At that level virtually all starter homes will be exempt from stamp duty.
All in all I think a good area for tax cuts.
>>> Edited by JagLover on Friday 22 April 16:19
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
Cutting Stamp Duty is tragic? What next, a tax on windows?
I'm disappointed the Tories haven't pledged to scrap it completely. Raising the threshold to £250k will have no effect on buyers in the South.
Alex said:
I'm disappointed the Tories haven't pledged to scrap it completely. Raising the threshold to £250k will have no effect on buyers in the South.
It will actually Alex-in the suburbs and surrounding countryside you can get at least a two bed roomed often three bed roomed house for less then 250K.
NorthernBoy said:
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
Won't it actually have the opposite effect near the threshold of £250K?
If you are selling a house valued at around the £260-280K mark, there would be even greater pressure to accept £249,995 now.
oyster said:
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
Won't it actually have the opposite effect near the threshold of £250K?
If you are selling a house valued at around the £260-280K mark, there would be even greater pressure to accept £249,995 now.
No... Even if you were selling at £260k, if the buyer want to drop to £249,999 and avoid the stamp duty, you just tell him the price is £260k and you'll pay the stamp duty for him. You're still better off.
NorthernBoy said:The logic of your argument is that stamp duty is the antidote to house price inflation. That has been Labour's answer to every macro-economic problem: don't deal with the cause, deal with the symptom. The result is distortion of the market. House prices continue to rise in areas where the effect of stamp duty is barely noticeable and they stagnate in areas where the effect hurts. Worse than that, the amount of the stamp duty itself affects price bands because of the iniqutious, stupid decision of Gordon "prudent" Brown to make each step-up in the duty bands apply to the whole purchase price. That in itself is ample proof of his lack of any understanding of economics.
The Conservatives have revealed their final tax cut.
They will raise the threshold that stamp duty is paid on house purchases from £120K to £250K. At that level virtually all starter homes will be exempt from stamp duty.
All in all I think a good area for tax cuts.
>>> Edited by JagLover on Friday 22 April 16:19
So they are going to add to house price inflation then.
And they think this is good for the economy.
It'd be funny of it wasn't so tragic.
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