Stamp Duty. Only one shot at being first time buyer.
Discussion
Morning. I think I know the answer to this but thought I'd just ask. Bought my first and only Property in 2000. Sold in 2004. Haven't owned a home since. Now in a position to buy again but I'm being asked to pay £5k in Stamp Duty due to it being second purchase as opposed to £400 if it were my first.
Even though there's a 20 year gap, I'm still liable for the full amount?
Cheers, Simon.
Even though there's a 20 year gap, I'm still liable for the full amount?
Cheers, Simon.
'Fraid so. I just paid £14,250 stamp duty :-( which would have been over £38,500 had I not transferred our last place over to my partner's name (I'd have got the difference back once sold but I wasn't in the position to raise the difference - it was all very tight. Cash).
Feels like robbery to me. I mean, I bought a house, and our lovely government relieved me of £14k
Feels like robbery to me. I mean, I bought a house, and our lovely government relieved me of £14k
Simon Bags said:
Morning. I think I know the answer to this but thought I'd just ask. Bought my first and only Property in 2000. Sold in 2004. Haven't owned a home since. Now in a position to buy again but I'm being asked to pay £5k in Stamp Duty due to it being second purchase as opposed to £400 if it were my first.
Even though there's a 20 year gap, I'm still liable for the full amount?
Cheers, Simon.
You're buying another property after previously owning one. Do you really think that makes you a first time buyer now?Even though there's a 20 year gap, I'm still liable for the full amount?
Cheers, Simon.
Griffith4ever said:
Feels like robbery to me. I mean, I bought a house, and our lovely government relieved me of £14k
SDLT really accelerates over £1M to truly offensive levels. And that’s out of taxed income so you need to earn double that to pay the bill.SDLT has become a massive drag on mobility, hiked up by successive governments. It’s now at levels that actively discourages activity in the market. My MIL really ought to downsize but the she won’t do it because of the cost in SDLT when the alternative is to sit tight and not pay it.
SDLT is only at these levels because governments need to increase taxes but won’t grasp the nettle of raising income tax.
It’s just brain dead short term fiscal policy, not for the long term benefit of the country.
CoolHands said:
Just wondering, how would they know? I d be surprised if there s a list somewhere of anyone that s ever owned a house! Especially from back then
When you tick the box to say 'I have owned a property before' or 'I have never owned a property before'....Of course such tax avoidance will be taken well by HMRC.
PhilboSE said:
SDLT really accelerates over £1M to truly offensive levels. And that s out of taxed income so you need to earn double that to pay the bill.
SDLT has become a massive drag on mobility, hiked up by successive governments. It s now at levels that actively discourages activity in the market. My MIL really ought to downsize but the she won t do it because of the cost in SDLT when the alternative is to sit tight and not pay it.
SDLT is only at these levels because governments need to increase taxes but won t grasp the nettle of raising income tax.
It s just brain dead short term fiscal policy, not for the long term benefit of the country.
Our last house was bought for £189k and sold for £799k. An untaxed profit of £610k. So the SDLT which we paid on the next house - which only cost £487k - was easily covered by the huge amount we made for doing sweet FA for ten years. And I don't think that we are alone in this.SDLT has become a massive drag on mobility, hiked up by successive governments. It s now at levels that actively discourages activity in the market. My MIL really ought to downsize but the she won t do it because of the cost in SDLT when the alternative is to sit tight and not pay it.
SDLT is only at these levels because governments need to increase taxes but won t grasp the nettle of raising income tax.
It s just brain dead short term fiscal policy, not for the long term benefit of the country.
I think it would be fairer to tax the profits made on sales; more complicated but easier to justify.
POIDH said:
CoolHands said:
Just wondering, how would they know? I d be surprised if there s a list somewhere of anyone that s ever owned a house! Especially from back then
When you tick the box to say 'I have owned a property before' or 'I have never owned a property before'....Of course such tax avoidance will be taken well by HMRC.
rlw said:
Our last house was bought for £189k and sold for £799k. An untaxed profit of £610k. So the SDLT which we paid on the next house - which only cost £487k - was easily covered by the huge amount we made for doing sweet FA for ten years. And I don't think that we are alone in this.
I think it would be fairer to tax the profits made on sales; more complicated but easier to justify.
Not really that simple. I think it would be fairer to tax the profits made on sales; more complicated but easier to justify.
Do most owner occupiers house price inflation does then little favours. It is inflation. Inflation is hated in all circumstances - unless mysteriously house prices.
Say you bought a 3 house for £500k and x years later sold of for £1m
Next you want a 4 bed house.
At the time of your first purchase a 4 bed was £700k
That same house is now £1.4m.
So fine you have " made " £500k on house one , but the difference between you old and new house instead of being £200k is now £400k which you likely put 80% of on mortgage
So unless you have multiple homes you are worse off - you still need a roof over your head and most people trade up not down
Simpo Two said:
Griffith4ever said:
Feels like robbery to me. I mean, I bought a house, and our lovely government relieved me of £14k
Aha now you know why they really want to build a million new homes every week 
How about changing your name by deed poll... would that work?
Jeremy-75qq8 said:
rlw said:
Our last house was bought for £189k and sold for £799k. An untaxed profit of £610k. So the SDLT which we paid on the next house - which only cost £487k - was easily covered by the huge amount we made for doing sweet FA for ten years. And I don't think that we are alone in this.
I think it would be fairer to tax the profits made on sales; more complicated but easier to justify.
Not really that simple. I think it would be fairer to tax the profits made on sales; more complicated but easier to justify.
Do most owner occupiers house price inflation does then little favours. It is inflation. Inflation is hated in all circumstances - unless mysteriously house prices.
Say you bought a 3 house for £500k and x years later sold of for £1m
Next you want a 4 bed house.
At the time of your first purchase a 4 bed was £700k
That same house is now £1.4m.
So fine you have " made " £500k on house one , but the difference between you old and new house instead of being £200k is now £400k which you likely put 80% of on mortgage
So unless you have multiple homes you are worse off - you still need a roof over your head and most people trade up not down
Surely the market would be much healthier if house prices were stable and taxation weren’t based on arbitrary sale prices, rather than homeowners ignorantly considering that living in a house with a high value makes them rich. Higher house prices means more borrowing, more debt, more interest, lower loan to value etc etc.
At some stage you need to release that value from property to benefit, but you still need to live somewhere…
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