Stamp duty question

[philv]

Hi

If i sell a house for 300k and then buy a house for 300k.
Do i pay stamp duty on the full 300k?

If i sold my house and bought another soon after every year, i would have to pay full stamp duty every time?
It’s not offset by the previous purchase?

Thanks

[RedWhiteMonkey]

philv said:

Hi

If i sell a house for 300k and then buy a house for 300k.
Do i pay stamp duty on the full 300k?

If i sold my house and bought another soon after every year, i would have to pay full stamp duty every time?
It’s not offset by the previous purchase?

Thanks

Pretty sure there is no offsetting against previous sales. The actual amount you’ll pay depends on if you’re a first time buyer, buying a new property or buying an additional or buy-to-let property. Have a look at this - https://www.moneyadviceservice.org.uk/en/tools/hou...

[philv]

Thanks.

That's crappy.
Certainly doesn't help mobility.

[RedWhiteMonkey]

Even without stamp duty costs, selling and moving every year would probably be an expensive option (and a major source of stress).

[Croutons]

philv said:

Hi

If i sell a house for 300k and then buy a house for 300k.
Do i pay stamp duty on the full 300k?

Thanks

Yes. Have you read something somewhere that suggests otherwise, or is that how it happens in some other country? The tax is in relation to the transaction, not who makes it, paying once has no bearing on any other transaction.

[anonymous-user]

anonymous said:

[redacted]

The absurdity of Stamp Duty is that your main residence is made exempt from Capital Gains Tax - where there IS an offset arrangement, including relief for losses.

But having made you exempt from CGT the government then imposes a "Moving House Tax" in the form of Stamp Duty.

Even crazier, Stamp Duty operates as "Moving House In the South Of England Tax".

Stamp Duty is a very old fashioned tax and had almost completely disappeared - until New Labour saw it as an easy way to raise money from the housing market and subsequent governments have simply continued on ramping it up.

[selmahoose]

philv said:

Hi

If i sell a house for 300k and then buy a house for 300k.
Do i pay stamp duty on the full 300k?

No.

Assuming 1) you are in England or Northern Ireland and
2) this is your only house........

You would pay 0% on the first £125k, 2% on the next £125k, and 5% on the final £50k. So total of £5k (or 1.67% of pp)