Stamp Duty revision 08 July 2020
Discussion
vdn said:
bunchofkeys said:
Sorry for being dense, but how is stamp duty calculated above £500,000?
For example if i was to put the house on the market at £520,000, how much would a potential buyer need to pay in stamp duty?
Second home / investment or first home?For example if i was to put the house on the market at £520,000, how much would a potential buyer need to pay in stamp duty?
Check out:
https://www.gov.uk/guidance/stamp-duty-land-tax-te...
In a general sense; you'll pay nothing on the first £500,000 and 5% on anything above... so 5% of £20,000 in your scenario.
So for 800k house it will be shy of 15k stamp duty?
https://www.moneysavingexpert.com/mortgages/stamp-...
https://www.moneysavingexpert.com/mortgages/stamp-...
BobSaunders said:
So for 800k house it will be shy of 15k stamp duty?
https://www.moneysavingexpert.com/mortgages/stamp-...
Yep 5% between 500k and 925k, before it goes to 10% above that. So £15k.https://www.moneysavingexpert.com/mortgages/stamp-...
What will be interesting is how many people people jump at the max £15k saving when housing prices are largely predicted to fall further. Most experts seem relatively set on 10-13% but it will all depend on area/street/value e.t.c
It does little for me, as the value of the housing I am looking at is "quite" likely to fall by more than £15k, however I can see it will help those outside of London and those FTB'ers/lower value purchases in London.
The timing of this is interesting, I wonder if the gov have timed this so any increase in volumes will look like it was as a result of gov intervention rather than the yet unknown uptick in sales that resulted from lockdown being removed. i.e you can see from this thread alone the number of people benefiting from this will immediately include those who were already going to commit (so frankly, it's just lost revenue for the gov)
However given the relatively short period of the initiative and the fact it's limited to a £500k threshold does suggest that they want to show they at least tried.
Edited by V6Alfisti on Wednesday 8th July 15:26
can't quibble at that.We sold a week and a half ago, and moved into rental (mi 6 mknth contract) whilst we find our next place.
Looking to spend 400k or there abouts. The saving is useful, as long as values don't start to rise on the back of it.
Ideally will wait until Autumn before offering on the next one now, unless something special that ticks all of our boxes turns up in the meantime.
Looking to spend 400k or there abouts. The saving is useful, as long as values don't start to rise on the back of it.
Ideally will wait until Autumn before offering on the next one now, unless something special that ticks all of our boxes turns up in the meantime.
Great news for people buying.
However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
TheAngryDog said:
Great news for people buying.
However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
This is true. And my excitement at my saving is humbled with the above in mind. However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
vdn said:
TheAngryDog said:
Great news for people buying.
However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
This is true. And my excitement at my saving is humbled with the above in mind. However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
. Yeh it will always be the rich / high earners, it always is.V6Alfisti said:
What will be interesting is how many people people jump at the max £15k saving when housing prices are largely predicted to fall further. Most experts seem relatively set on 10-13% but it will all depend on area/street/value e.t.c
It's certainly going to help. I have had 3 viewngs this week, 1 today. It's mostly about the cost to change unless you're willing to take a punt and get off the property ladder - the experts may be right but if you don't need to sell then the 'drop' will be marginal.PeteinSQ said:
Imagine being one of the people who completed the week before and spent the £15k. That would be a kick in the plums.
People who have kept the economy going by paying solicitors, builders, estate agents, removal firms etc during lock down get nothing; those who sat on their hands and kept their money to themselves get rewarded with a 5 figure sum from the government...I'm sure it's all been well thought out though.
TheAngryDog said:
Great news for people buying.
However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
We will just make the kids pay. Free government money today wahaaaay!! However, this is reported to be costing the Treasury £3.8bn in lost earnings, so who is going to foot that bill? What with giving out money for people put on furlough and the ne'er do wells who used it as an excuse to take the piss, where is all this lost revenue going to come from?
Celebrate now, but they will recover this lost money some how...
What happens tomorrow doesn't matter a s
t to anyone apparently 
PrinceRupert said:
in London lots are limited by the size of the deposit required rather than salary multiples.
Would love to see figures behind this. My suspicion is that there are a lot for whom the salary multiple is the principal constraint. If you’ve got a £50k deposit a 90% LTV mortgage would imply a c.£100k mortgage-able earnings. Getting to a war-chest of £800k with a 10% deposit and then you’re needing £160k p.a. harder than it sounds now lots of places are discounting bonuses/variable remuneration more heavily. Edited by PrinceRupert on Wednesday 8th July 14:36
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