New stamp duty rules

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Annabel (admin)
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New stamp duty rules

Postby Annabel (admin) » Wed Dec 03, 2014 1:41 pm

From the budget...

http://www.bbc.co.uk/news/live/business-30249297

Stamp duty has changed and with the price of houses in Nappy Valley being pretty high I think this will affect many NVNers.

Purchase price of property Rate of SDLT (percentage of the total purchase price)

£0 - £125,000 0%

£125,001 - £250,000 2%

£250,001 - £925,000 5%

£925,001 - £1.5 million 10%

Over £1.5M 12%

My understanding is that this is marginal so for a 1.5 million pound house... I work it out to be 93.75k in stamp duty, as in it's not on the whole amount paid.
Goldhawk
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Re: New stamp duty rules

Postby Goldhawk » Wed Dec 03, 2014 2:39 pm

Yes the new rates are banded instead of the old system which was a % of the total

So under the old system the Stamp duty on a £1.5M house was £75K

On a £2M house you now pay £153,750 instead of £100,000 before = OUCH!!
juliantenniscoach
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Re: New stamp duty rules

Postby juliantenniscoach » Wed Dec 03, 2014 2:44 pm

And Ed Balls is still pushing the 'mansion' tax which would undoubtably affect many of us too. Watch out for more basements and lofts coming your way! ;)
Couloir
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Re: New stamp duty rules

Postby Couloir » Wed Dec 03, 2014 3:01 pm

just as well we all love living in the area...cos we're never moving!
MummyWalker
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Re: New stamp duty rules

Postby MummyWalker » Wed Dec 03, 2014 3:07 pm

Numbers geek that I am, I've just tried working out the break even point and I think its £1.125m i.e. for houses worth less than that, you're better off under the new system and for houses worth more, you'll now pay more in stamp duty
cuqui03
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Re: New stamp duty rules

Postby cuqui03 » Wed Dec 03, 2014 3:39 pm

We exchanged literally early this week and expect the keys on Friday. We have literally just saved £5k so pretty happy about the timing!
petal
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Re: New stamp duty rules

Postby petal » Wed Dec 03, 2014 8:45 pm

All we need now is mansion tax and new tax on capital gains
That would be the full monty

What gets me with the mansion tax is the assumption that asset rich is cash rich.
Idiocy
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Re: New stamp duty rules

Postby juliantenniscoach » Wed Dec 03, 2014 8:58 pm

Ed Balls - Gordon Brown's No 2, Chief adviser. Brown............withholding tax and selling gold at all time low. :shock:

Theoretically, depending on the level of the 'mansion' tax we could be penalised for simply living too close to central London. The latest figures suggest that the population of Greater London will rise 37% over the next decade. Now clearly there isn't going to be a 37% increase in living space so that will push the prices of houses up over the median rate for the country.

Although we may be asset rich, it's an asset we can't touch because we live in it. If the tax demand is too high on families who are already cash strapped, then the tax will force you to move. Now what type of tax forces you to uproot your family from friends, schools etc simply because you made a good choice when buying your house? Ironic that Labour would create a tax that actually excludes many social groups to the benefit of the cash rich.
Bodders1
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Re: New stamp duty rules

Postby Bodders1 » Wed Dec 03, 2014 10:47 pm

Anyone buying a house worth more than £937,500 will be worse off so that could be a significant number of NVN'ers
For a £1.5m house by about £18k
For a £2.0m house by about £18k
For a £3.0m house by about £63k
I see Foxtons share price has dropped!!
MummyWalker
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Re: New stamp duty rules

Postby MummyWalker » Thu Dec 04, 2014 1:01 am

Just been trying to work out why Bodders1 and I were drawing different conclusions on the point at which people are better / worse off! I realise I'd only looked at purchases of £1m plus. Looks like we're both right though - below £937,500 you'd be better off with the new system, then up until £1m you'd be worse off, then from £1m-£1.125m you'd be better off again, and then above £1.125m you'd be worse off
gruffalo's dad
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Re: New stamp duty rules

Postby gruffalo's dad » Thu Dec 04, 2014 4:20 am

MummyWalker is correct that a buyer will pay slightly more stamp duty on purchases between £937,500 and £1m, but the increase there is extremely marginal. It is over £1.15m that there is a hit, and especially between £1.5m and £2m.

I saw a table that showed the impact of the change on different parts of the U.K. The only place the stamp duty take goes up is London - by over £400m per annum. The place the stamp duty take goes down the most is the South-East (outside of London) - by about £300m. That's a reflection of the fact that the reduction in stamp duty under the new rules compared to the old is greatest for properties selling for £250k to £400k and £500k to £750k. There are relatively few properties in the north of England or Wales at these prices, but plenty in the South-East.
firsttimerSW11
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Re: New stamp duty rules

Postby firsttimerSW11 » Thu Dec 04, 2014 10:27 am

It always amuses me when the Labour Party bandy around mansion tax figures, usually accompanied by a picture of a, well, mansion. Hardly a skinny former workers terrace with what can only be described as a back yard and no off street parking. I love living in a mansion!!!
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Re: New stamp duty rules

Postby london_maman » Thu Dec 04, 2014 10:35 am

juliantenniscoach wrote:Ed Balls - Gordon Brown's No 2, Chief adviser. Brown............withholding tax and selling gold at all time low. :shock:

Theoretically, depending on the level of the 'mansion' tax we could be penalised for simply living too close to central London. The latest figures suggest that the population of Greater London will rise 37% over the next decade. Now clearly there isn't going to be a 37% increase in living space so that will push the prices of houses up over the median rate for the country.

Although we may be asset rich, it's an asset we can't touch because we live in it. If the tax demand is too high on families who are already cash strapped, then the tax will force you to move. Now what type of tax forces you to uproot your family from friends, schools etc simply because you made a good choice when buying your house? Ironic that Labour would create a tax that actually excludes many social groups to the benefit of the cash rich.
Honestly? I don't think anybody will feel sorry for you. First world problem! If you have a house worth more than 1M you are rich. And I don't think any of you will have to "uproot your family from friends and schools". Let's take a step back and think about people who can't afford presents for their children for Christmas, and they are lots of them in this country. People who buy frozen pizzas because it's cheaper than fresh meat at the butcher. Reading some of these comments is quite shocking.
btcmum
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Re: New stamp duty rules

Postby btcmum » Thu Dec 04, 2014 12:47 pm

Honestly? I don't think anybody will feel sorry for you….. Reading some of these comments is quite shocking.[/quote]

london_maman… really??
petal
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Re: New stamp duty rules

Postby petal » Thu Dec 04, 2014 12:50 pm

Errr you are not really rich based on the value if your home
It's not like the house is then stuffed with £1m in notes
Many people here bought their houses well under a million
I know it's a bit hard to understand for some
And we can always compare ourselves to less fortunate of course
Bit the issues of a mansion tax would be a real
Threat to many
It's a current real issue and why should people apologise for it??
Step of your pedistal!!