FabSwingers.com > Forums > The Lounge > Mansion Tax/Stamp Duty
Mansion Tax/Stamp Duty
Jump to: Newest in thread
 |
By (user no longer on site) OP
over a year ago
|
Looks like the politicians may have got this right for once, instead of a mansion tax, Osborne has gone for a huge hike in stamp duty on high value homes. So if you are lucky enough to buy a £2m home from midnight you will have to find an additional £153,750 to pay the stamp duty. Better in my _iew than an arbitrary mansion tax. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"Well that's a start.
Sadly won't affect me, but what about taxing the foreign investors who are fuelling the hike in property prices especially in the Southeast."
Under the new changes they will be, 12% on anything over £1.5m. |
Reply privately, Reply in forum +quote
or View forums list | |
"Well that's a start.
Sadly won't affect me, but what about taxing the foreign investors who are fuelling the hike in property prices especially in the Southeast."
I agree with this as it is having a devastating affect on the housing crisis |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"Well that's a start.
Sadly won't affect me, but what about taxing the foreign investors who are fuelling the hike in property prices especially in the Southeast.
I agree with this as it is having a devastating affect on the housing crisis"
An easy solution would be to make any property owned through a company or a foreign national to be subject to CGT in addition to the stamp duty paid at the point of purchase. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *oodmessMan
over a year ago
yumsville |
"Looks like the politicians may have got this right for once, instead of a mansion tax, Osborne has gone for a huge hike in stamp duty on high value homes. So if you are lucky enough to buy a £2m home from midnight you will have to find an additional £153,750 to pay the stamp duty. Better in my _iew than an arbitrary mansion tax."
no it was homes over £5m that would have an additional £500k on them I thought.
It is good, and more workable than a mansion tax proposal, where people may have inherited houses but not have the capital of an annual fee.
It does raise the question though. As most investments on properties in London are from rented accom - bought at the lower end of the scale, will it actually allow people to be able to afford to buy or will it simply mean more aggressive (if that is possible) buying for those cheaper properties? |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *oodmessMan
over a year ago
yumsville |
In addition - it's reported that due to the lack of investment opportunities in London, the likelyhood is that investors will seek out Northern cities - again creating competition and a similar picture to that in London.
I did wonder when I heard the duty announcement, and though there should be caveats for first time buyers as opposed to large scale investment portfolios |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *y2funMan
over a year ago
DUDLEY |
" So if you are lucky enough to buy a £2m home from midnight you will have to find an additional £153,750 "
I believe they have both in the USA ? but not 100% sure. won't really address anything and won't help the homeless. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"In addition - it's reported that due to the lack of investment opportunities in London, the likelyhood is that investors will seek out Northern cities - again creating competition and a similar picture to that in London.
I did wonder when I heard the duty announcement, and though there should be caveats for first time buyers as opposed to large scale investment portfolios"
The vast majority of home buyers will be better off under the new rates and those at the upper end will be taxed significantly more. While interest rates remain below 1% people will look to property as an investment vehicle, but remember they pay stamp duty on the way in, income tax on the rent and CGT on the way out. I know it doesn't particularly help first time buyers etc but it is the nature of the market while there continues to be an imbalance in supply and demand. The govt should embark on a massive social housing build but it won't. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *oodmessMan
over a year ago
yumsville |
"In addition - it's reported that due to the lack of investment opportunities in London, the likelyhood is that investors will seek out Northern cities - again creating competition and a similar picture to that in London.
I did wonder when I heard the duty announcement, and though there should be caveats for first time buyers as opposed to large scale investment portfolios
The vast majority of home buyers will be better off under the new rates and those at the upper end will be taxed significantly more. While interest rates remain below 1% people will look to property as an investment vehicle, but remember they pay stamp duty on the way in, income tax on the rent and CGT on the way out. I know it doesn't particularly help first time buyers etc but it is the nature of the market while there continues to be an imbalance in supply and demand. The govt should embark on a massive social housing build but it won't."
I didn't realise the income tax, though the reason they buy the properties is for investment and rents.
Just remembered a documentary on high occupancy housing. One Birmingham landlord stuffed 20+ people into one property calling each converted room 'studio flats'. I realise this is the extreme end of things, but his portfolio was over £26m as I remember?
Those that are looking at property as a pensions investment are wholly different to those that invest in property as a business - driving demand up. A second tax band for this would equal the balance |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"In addition - it's reported that due to the lack of investment opportunities in London, the likelyhood is that investors will seek out Northern cities - again creating competition and a similar picture to that in London.
I did wonder when I heard the duty announcement, and though there should be caveats for first time buyers as opposed to large scale investment portfolios
The vast majority of home buyers will be better off under the new rates and those at the upper end will be taxed significantly more. While interest rates remain below 1% people will look to property as an investment vehicle, but remember they pay stamp duty on the way in, income tax on the rent and CGT on the way out. I know it doesn't particularly help first time buyers etc but it is the nature of the market while there continues to be an imbalance in supply and demand. The govt should embark on a massive social housing build but it won't.
I didn't realise the income tax, though the reason they buy the properties is for investment and rents.
Just remembered a documentary on high occupancy housing. One Birmingham landlord stuffed 20+ people into one property calling each converted room 'studio flats'. I realise this is the extreme end of things, but his portfolio was over £26m as I remember?
Those that are looking at property as a pensions investment are wholly different to those that invest in property as a business - driving demand up. A second tax band for this would equal the balance"
Unfortunately rogue landlords do exist, but there are pretty stringent rules on multiple occupancy properties and they get found out in the end.
The bigger issue is one of affordability for those wanting to buy, which is only going to get harder if and when interest rates move upwards. |
Reply privately, Reply in forum +quote
or View forums list | |
I think it's a good start in that most people will benefit.
But I think it's an iniquitous tax in that most people, pay tax on their earnings and then get taxed again if they want to buy somewhere to live. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *oo hotCouple
over a year ago
North West |
"Put a tax of 0.01 percent on all banking transactions and this would raise 200 billion pounds a year "
Why just a banking tax? A transaction tax instead of Corporation tax would tax everyone doing business in this country fairly and proportionately. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"mansion tax, if it happens it happens, if it doesn't it doesn't .... there's nothing anyone on this thread can do about it and it won't effect anyone on this thread either i shouldn't imagine"
Apart from vote for a party which does or doesn't have it in their manifesto depending on your _iew, and hope they stick to their promises! |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *abioMan
over a year ago
Newcastle and Gateshead |
"I think it's a good start in that most people will benefit.
"
not so fast there!!!!!!!!!!
actually.... thats not quite true.....
you see the fine print..... actually anyone who buys a house for less than 250,000 (so basically most people with the exception of london and the south east) wont actually pay any less in stamp duty than they do now.......
those between 250,000 and 925,000.... yes they will pay less stamp duty....
those over 925,000 will pay more stamp duty.......
in effect this will cost the treasury money..... it will help the people who are actually likely to vote blue in areas they will need for the next election....
it is basically a tax cut for those moving homes....
see..... the way they are going to do it in scotland is actually fairer.... devoulution in action!!!!! in that it would have been cost neutral (which means no more or less money would have come in) but they were going to do it on a completely sliding scale where those at the bottom would have paid less... and those at the top would have paid more...... |
Reply privately, Reply in forum +quote
or View forums list | |
I'd also double it if properties are left empty for any length of time, at a minimum. Too many renters are paying too much as investors just deplete our housing stock whilst no one occupies them. As they frequently pay no or little council tax there should be some punitive ongoing fees that support local essential infrastructure and service costs such as roads and healthcare. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *nnyMan
over a year ago
Glasgow |
"I'd also double it if properties are left empty for any length of time, at a minimum. Too many renters are paying too much as investors just deplete our housing stock whilst no one occupies them. As they frequently pay no or little council tax there should be some punitive ongoing fees that support local essential infrastructure and service costs such as roads and healthcare."
We should maybe try to find a way of penalising the owners of second homes, often only occupied for a few weeks a year. |
Reply privately, Reply in forum +quote
or View forums list | |
"mansion tax, if it happens it happens, if it doesn't it doesn't .... there's nothing anyone on this thread can do about it and it won't effect anyone on this thread either i shouldn't imagine
Apart from vote for a party which does or doesn't have it in their manifesto depending on your _iew, and hope they stick to their promises!"
and they may or may not get to form a government .... either way who ever gets in will do whatever and there's nothing we can do about that either .... for four maybe five years and then it will go on ad infinitum |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *athnBobCouple
over a year ago
sandwell |
"As they frequently pay no or little council tax there should be ....."
You pay full council tax on an empty property as of april this year. Local councils also have the power to force you to rent it out although I have not heard of them invoking that power. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *oo hotCouple
over a year ago
North West |
"I'd also double it if properties are left empty for any length of time, at a minimum. Too many renters are paying too much as investors just deplete our housing stock whilst no one occupies them. As they frequently pay no or little council tax there should be some punitive ongoing fees that support local essential infrastructure and service costs such as roads and healthcare.
We should maybe try to find a way of penalising the owners of second homes, often only occupied for a few weeks a year."
Wow... So you tax people on the cash they earn, you tax it when it is in the bank on deposit, you tax it with stamp duty when they buy the house and then you want to tax them again for owning the property? |
Reply privately, Reply in forum +quote
or View forums list | |
"As they frequently pay no or little council tax there should be .....
You pay full council tax on an empty property as of april this year. Local councils also have the power to force you to rent it out although I have not heard of them invoking that power."
The council tax often gets avoided, and places such as Westminster have multimillion pound properties where token payments could potentially be changed to a range of payments due for purchases, leaving them empty and lack of contributions to the local society. There has been too much overseas buying up of property, forcing the rest of us to have increased costs as a result, whilst many of the properties are not really used as they should have been. |
Reply privately, Reply in forum +quote
or View forums list | |
50% of prime London properties were in 2012/3 bought by overseas buyers, £7billion spent, and 66% were not bought by the overseas' buyers for living accommodation, but for investment purposes. The locals are the losers, and this ripples through the UK with reductions in property to be rented or bought by us, as well as vastly increasing rents and purchase prices. That is not a housing strategy that helps the typical resident here nor should be supported.
In Australia overseas purchasers must ensure that any purchased property has to have an equivalent home made available additionally for locals. I'm not sure that this is the answer, but we do need to focus on increasing local properties for local people, as well as rent controls. We're letting two thirds of our property be bought by overseas people who don't live in it! |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site) OP
over a year ago
|
"50% of prime London properties were in 2012/3 bought by overseas buyers, £7billion spent, and 66% were not bought by the overseas' buyers for living accommodation, but for investment purposes. The locals are the losers, and this ripples through the UK with reductions in property to be rented or bought by us, as well as vastly increasing rents and purchase prices. That is not a housing strategy that helps the typical resident here nor should be supported.
In Australia overseas purchasers must ensure that any purchased property has to have an equivalent home made available additionally for locals. I'm not sure that this is the answer, but we do need to focus on increasing local properties for local people, as well as rent controls. We're letting two thirds of our property be bought by overseas people who don't live in it!"
The answer is pretty simple, relax planning laws and allow a massive investment in new social housing rather than focusing on super high value housing in London. It would provide a stimulus to the construction industry, an investment in much needed infrastructure and provide affordable housing for key workers. |
Reply privately, Reply in forum +quote
or View forums list | |
"We should maybe try to find a way of penalising the owners of second homes, often only occupied for a few weeks a year."
we attemted this in wales in the 80's but the government in whitehall put a stop to it muttering something about arson being illegal  |
Reply privately, Reply in forum +quote
or View forums list | |
|
By *nnyMan
over a year ago
Glasgow |
"I'd also double it if properties are left empty for any length of time, at a minimum. Too many renters are paying too much as investors just deplete our housing stock whilst no one occupies them. As they frequently pay no or little council tax there should be some punitive ongoing fees that support local essential infrastructure and service costs such as roads and healthcare.
We should maybe try to find a way of penalising the owners of second homes, often only occupied for a few weeks a year.
Wow... So you tax people on the cash they earn, you tax it when it is in the bank on deposit, you tax it with stamp duty when they buy the house and then you want to tax them again for owning the property?"
No. Not for owning it. For not using it. |
Reply privately, Reply in forum +quote
or View forums list | |
"I think it's a good start in that most people will benefit.
not so fast there!!!!!!!!!!
actually.... thats not quite true.....
you see the fine print..... actually anyone who buys a house for less than 250,000 (so basically most people with the exception of london and the south east) wont actually pay any less in stamp duty than they do now.......
those between 250,000 and 925,000.... yes they will pay less stamp duty....
those over 925,000 will pay more stamp duty.......
in effect this will cost the treasury money..... it will help the people who are actually likely to vote blue in areas they will need for the next election....
it is basically a tax cut for those moving homes....
see..... the way they are going to do it in scotland is actually fairer.... devoulution in action!!!!! in that it would have been cost neutral (which means no more or less money would have come in) but they were going to do it on a completely sliding scale where those at the bottom would have paid less... and those at the top would have paid more......"
Sorry, but you're wrong - suggest you read the changes again.
For example, prior to the change, a house costing £150k would require stamp duty of £1.5k. After the changes, stamp duty is now £0.5k. It's tapered like income tax, so you only pay the tax on the amount over the threshold, not, as before, on the whole amount. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site)
over a year ago
|
I think we should move to a land value tax. So when you purchase a property your future council tax is directly related to the purchase price of your house.
There should be no future revaluations. Obviously if as we are experiencing now there are large increases in house rises then when you sell your house the new owner pays on the new purchase price.
This has the effect of not making current owners hostages to fortune should an area increase in desirability but does dampen the effect of very large increases in property. So that London house that was bought for £250k and is now worth £1m would be subject to a large increase in LVT and this would add a brake to rediculous increases house prices but the current owner is taxed on £250 |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site)
over a year ago
|
Why don't we just cut to the chase forget about all the bollocks and put a massive punitive council tax on second homes.
We've got plenty of houses already built, huge amounts are sitting empty and big amounts are bought up as buy to let investments.
While we're at it, stick some capital gains on any house sale where profit was made on the sale.
When you do that, you'll find there is no housing shortage after all.
You can build all the fucking houses from here to Scotland on every bit of green belt going but if there all bought for profit and investment they will all still be unaffordable to the first timers. |
Reply privately, Reply in forum +quote
or View forums list | |
|
By (user no longer on site)
over a year ago
|
"50% of prime London properties were in 2012/3 bought by overseas buyers, £7billion spent, and 66% were not bought by the overseas' buyers for living accommodation, but for investment purposes. The locals are the losers, and this ripples through the UK with reductions in property to be rented or bought by us, as well as vastly increasing rents and purchase prices. That is not a housing strategy that helps the typical resident here nor should be supported.
In Australia overseas purchasers must ensure that any purchased property has to have an equivalent home made available additionally for locals. I'm not sure that this is the answer, but we do need to focus on increasing local properties for local people, as well as rent controls. We're letting two thirds of our property be bought by overseas people who don't live in it!
The answer is pretty simple, relax planning laws and allow a massive investment in new social housing rather than focusing on super high value housing in London. It would provide a stimulus to the construction industry, an investment in much needed infrastructure and provide affordable housing for key workers."
This only works if you build the corresponding infrastructure, schools, hospitals, new water treatment plants and reservoirs as well as power generation etc. |
Reply privately, Reply in forum +quote
or View forums list | |
» Add a new message to this topic
