I hate Stamp Duty with a passion
Discussion
It raises tax revenue granted - and please don't for a minute think I'm complaining about that because I'm not.
In any fair society those with the broadest shoulders should contribute more.
But there has to be a better way...
As far as I can see it just increases the cost of mobility!!
People stay in areas they don't want to, commuting further to jobs based elsewhere.
Growing families get stung for trading up the housing ladder as they need more space.
Renters get stuck renting due to it being an additional cost to buy.
Even older people in family homes which they don't need any more, stay in them to avoid getting taxed for trading down to somewhere smaller.
Increase council tax, so those who can afford the big houses pay more into the pot vs those in small houses.
Put in on VAT or onto income tax so that those who earn / spend more, pay more into the pot.
There are probably dozens of other ways to do it.
I'm not a financial or political expert - so somebody please tell me the benefits of collecting revenue via Stamp Duty!!
(and don't just say 'because the Government can')
In any fair society those with the broadest shoulders should contribute more.
But there has to be a better way...
As far as I can see it just increases the cost of mobility!!
People stay in areas they don't want to, commuting further to jobs based elsewhere.
Growing families get stung for trading up the housing ladder as they need more space.
Renters get stuck renting due to it being an additional cost to buy.
Even older people in family homes which they don't need any more, stay in them to avoid getting taxed for trading down to somewhere smaller.
Increase council tax, so those who can afford the big houses pay more into the pot vs those in small houses.
Put in on VAT or onto income tax so that those who earn / spend more, pay more into the pot.
There are probably dozens of other ways to do it.
I'm not a financial or political expert - so somebody please tell me the benefits of collecting revenue via Stamp Duty!!
(and don't just say 'because the Government can')
Of course, it's political. Those on the left tend to like transaction taxes - VAT, stamp duty, the "Tobin tax" on financial transactions that's proposed, inheritance tax and so on. They also like property taxes. Vince Cable is a proponent of other asset taxes for example.
Personally I prefer taxes on income, then you can do with it what you wish. Whether saving (which often ends up investing in businesses) or spending (direct cash to businesses) much of the money goes around into more salaries, and gets taxed then on each circuit of the economy. So this is indirectly a transaction tax anyway. If everything was done that way, then the amount of tax you pay would be completely transparent - even more so if NI and Income Tax were amalgamated.
And that's why they won't do it.
(|'m ignoring taxes designed to change behaviour, such as taxes on tobacco, imports etc. for simplicity)
Personally I prefer taxes on income, then you can do with it what you wish. Whether saving (which often ends up investing in businesses) or spending (direct cash to businesses) much of the money goes around into more salaries, and gets taxed then on each circuit of the economy. So this is indirectly a transaction tax anyway. If everything was done that way, then the amount of tax you pay would be completely transparent - even more so if NI and Income Tax were amalgamated.
And that's why they won't do it.
(|'m ignoring taxes designed to change behaviour, such as taxes on tobacco, imports etc. for simplicity)
blueg33 said:
Just to annoy you more. If you buy a property that's elected for VAT, you pay SDLT on the gross price, so you are paying a tax on a tax.
and when you inherit a property in this category ... inheritance tax kicks in and thats tax on tax on tax that was bought with a taxed income ... great isnt it! 
In fairness SDLT is a small drop in the ocean of current housing problems across the UK.
Deposits to even get a mortgage are a massive problem for first time buyers and now second time buyers because the jump from a 1st home to 2nd is now so great. Added to the mix is people not moving from homes in general and just extending as it is cheaper than moving.
All whilst we simply cannot build enough houses. 300,000 new homes in a year, never going to happen as promised. Added to that is lack of skilled trades to build the sodding things (and after we leave the EU it will get worse) - around a 1/3 for London, a little lower for outside London are from the EU.
I suppose we are "lucky" buying our 1st house for some that is a 3rd or 4th home (4 bed detached), but being the SE means it is knocking on for £500k. SDLT in comparison with the deposit is a "minor" problem, rather like the Solicitor and Surveying costs, but they still are expensive.
Obviously, we benefit from the recent change and save £5k on our SDLT which was £13k.
Deposits to even get a mortgage are a massive problem for first time buyers and now second time buyers because the jump from a 1st home to 2nd is now so great. Added to the mix is people not moving from homes in general and just extending as it is cheaper than moving.
All whilst we simply cannot build enough houses. 300,000 new homes in a year, never going to happen as promised. Added to that is lack of skilled trades to build the sodding things (and after we leave the EU it will get worse) - around a 1/3 for London, a little lower for outside London are from the EU.
I suppose we are "lucky" buying our 1st house for some that is a 3rd or 4th home (4 bed detached), but being the SE means it is knocking on for £500k. SDLT in comparison with the deposit is a "minor" problem, rather like the Solicitor and Surveying costs, but they still are expensive.
Obviously, we benefit from the recent change and save £5k on our SDLT which was £13k.
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