And now they tell you when to move.......
Discussion
""Property sellers may be hit with stamp duty
Property owners will be taxed on the sale as well as the purchase of homes under proposals drawn up in Downing Street.
People will pay more tax the longer they live in their home to encourage them to move around.
The scheme, from Tony Blair's strategy unit, comes amid fears that rising house prices have left many public sector workers unable to afford to live in certain areas, especially in London and South East.
The proposal is the work of Barry McCormick, who has just been appointed chief economist at the Department of Health, The Daily Telegraph reports.
He told the newspaper that stamp duty on the purchase of houses should be cut to compensate for the introduction of a new tax on sales.
Sales stamp duty would increase with each year the vendor lives in the house, making it more expensive to stay put.
"It would have the beneficial effect of raising the same amount of stamp duty while reducing the inefficiency," he told the newspaper.
"At the moment you pay stamp duty when you purchase a house and that creates rigidity and inhibits efficiency because people try to avoid moving around to avoid the stamp duty." ""
Words fail me........ what planet do these people live on??? How can living in a home be "inefficient"???
Property owners will be taxed on the sale as well as the purchase of homes under proposals drawn up in Downing Street.
People will pay more tax the longer they live in their home to encourage them to move around.
The scheme, from Tony Blair's strategy unit, comes amid fears that rising house prices have left many public sector workers unable to afford to live in certain areas, especially in London and South East.
The proposal is the work of Barry McCormick, who has just been appointed chief economist at the Department of Health, The Daily Telegraph reports.
He told the newspaper that stamp duty on the purchase of houses should be cut to compensate for the introduction of a new tax on sales.
Sales stamp duty would increase with each year the vendor lives in the house, making it more expensive to stay put.
"It would have the beneficial effect of raising the same amount of stamp duty while reducing the inefficiency," he told the newspaper.
"At the moment you pay stamp duty when you purchase a house and that creates rigidity and inhibits efficiency because people try to avoid moving around to avoid the stamp duty." ""
Words fail me........ what planet do these people live on??? How can living in a home be "inefficient"???
Have these people got nothing better to do? The reason no one wants these jobs in the S/East is because the house prices are too high, right? OK, moving the liability for stamp duty from buyer to seller will only serve to increase the asking price of homes, to take the tax into account! The only way IMO to recruit the staff required is to make the posts being offered more attractive, not attempt to alter the housing market. Or am I being thick?! I don't think so.
Moving house is expensive enough as it is. We've recently moved from one £300K house to another and I reckon it cost over £20K
Stamp Duty 9K
Estate Agent Fees 4.5K+VAT
Legal Fees 2.5K+VAT
Removal Costs 2.5K
Survey .5K
Now thats already significant money and the only way most people could afford that is to slap it on the next mortgage.
Moving House is exepnsive enough, ways should be found to reduce those costs, ie to step the increments on stamp duty rather than the big bang approach. Of course people will try and avoid paying stamp duty at 3% on a 260K house, but if the rates were 1% on first 250K and 3% on remaining 10K, then it would seem a lot fairer.
As for a sellers tax, that just stinks (don't we pay it already to those estate agent people!!)
davidy
Stamp Duty 9K
Estate Agent Fees 4.5K+VAT
Legal Fees 2.5K+VAT
Removal Costs 2.5K
Survey .5K
Now thats already significant money and the only way most people could afford that is to slap it on the next mortgage.
Moving House is exepnsive enough, ways should be found to reduce those costs, ie to step the increments on stamp duty rather than the big bang approach. Of course people will try and avoid paying stamp duty at 3% on a 260K house, but if the rates were 1% on first 250K and 3% on remaining 10K, then it would seem a lot fairer.
As for a sellers tax, that just stinks (don't we pay it already to those estate agent people!!)
davidy
K off Mr Brown!Oh and I forgot to say out that 20K we spent, over half went to government in duty and VAT
and now they want more.....
davidy
and what happens if you get left a house as an inheritance, when you sell it do you incur a 'sellers' tax on all those years that your grandmother lived there?? (not taking into account the robbing inheritance tax system as well, probably forcing you to sell the house to pay the tax bill, thus incurring a bigger tax bill, oh its a labour government lets have 100% tax so we can redecorate No.10 and build a special bookcase for the first lady!!!)
and now they want more.....
davidy
and what happens if you get left a house as an inheritance, when you sell it do you incur a 'sellers' tax on all those years that your grandmother lived there?? (not taking into account the robbing inheritance tax system as well, probably forcing you to sell the house to pay the tax bill, thus incurring a bigger tax bill, oh its a labour government lets have 100% tax so we can redecorate No.10 and build a special bookcase for the first lady!!!)
quote:
Mondeoman,
Could you please point me to where the article is from, had a quick look but could not find it.
BTW anybody know how I can find out who my local MP is???
TIA
Nik
Lifted it from Freeserve news pages (is that allowed??)
try www.faxyourmp.co.uk
quote:
Sales stamp duty would increase with each year the vendor lives in the house, making it more expensive to stay put.
Except that is doesn't make it more expensive to stay put. It makes it more expensive to move, as you're not going to pay the tax until you sell.
If the stated aim it to encourage people to move around then this would have the opposite effect. After x years in a house, it may well work out that it's too expensive for someone to move to an equivalent property due to the tax burden. Think of the elderly, who WANT to stay in a house for a good few years. These days, they're a significant (and growing) portion of the voting public. Legislation like this would be political suicide, so it'll never actually be put into practice IMHO.
Dan
quote:
Except that is doesn't make it more expensive to stay put. It makes it more expensive to move, as you're not going to pay the tax until you sell.
If the stated aim it to encourage people to move around then this would have the opposite effect. After x years in a house, it may well work out that it's too expensive for someone to move to an equivalent property due to the tax burden. Think of the elderly, who WANT to stay in a house for a good few years. These days, they're a significant (and growing) portion of the voting public. Legislation like this would be political suicide, so it'll never actually be put into practice IMHO.
Dan
Doesn't this mean that if a large portion of the population don't move and the moving tax is set at a level just above average inflation, then eventually the state will own your house?? So this is really an attempt to increase inheritance tax and rob you blind..
And this guy is supposed to be in charge?? Mental Institute would be too good for him.
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