Budget special - Great news for First time buyers

[Uncle Spielberg]

Gordon Brown has massively increased the stamp duty threshold from £ 120000 to £ 125000.

Thanks Gordon.

For nothing

oh and fags up 9p, wine up 4p and beer up 1p.

 

[Pevenseagull]

so all those properties that were on for 119,950 will all go up 5K

I guess

 

[Man of Harveys]

Is it still £250,000 cut-off for the 1% stamp duty?

 

[Pevenseagull]

Is it still £250,000 cut-off for the 1% stamp duty?

looks like it, can't find any further details


He's lumped an extra £50K on the IHT nil rate band, I assume it means one his family is about to DIE

 

[Barrel of Fun]

Is it still £250,000 cut-off for the 1% stamp duty?

Yes. Still £250,000. So that change serves little or no purpose. Just a cosmetic change to keep the voters sweet.

 

[Basil Fawlty]

David Cameron really grilled him in his speech about the budget.

 

[Barrel of Fun]

looks like it, can't find any further details


He's lumped an extra £50K on the IHT nil rate band, I assume it means one his family is about to DIE

People should use the 7 year gift rule and start to transfer the properties into their benefactors names well before their sixties.

Or indeed, my grandfather and grandmother split their house, so that when she died, half the property was left to my father and uncle etc. Good way to avoid IHT.

 

[seagullsovergrimsby]

The increase means a lot more to people in the north who can still buy a three bedroom house and not pay stamp duty.

 

[Barrel of Fun]

The increase means a lot more to people in the north who can still buy a three bedroom house and not pay stamp duty.

But there is no guarantee that it will help those that most need it. Investors will be salivating.

 

[Pevenseagull]

he's also reduced the rate of VAT on contraceptives and children's car seats to 5%


earth shattering budget this one, I'm tellin' ya

 

[Uncle Spielberg]

Estate agents campaign this evening, call all vendors with properties on for up to £ 120000 and get them to increase the price to £ 125000

 

[Pevenseagull]

People should use the 7 year gift rule and start to transfer the properties into their benefactors names well before their sixties.

Or indeed, my grandfather and grandmother split their house, so that when she died, half the property was left to my father and uncle etc. Good way to avoid IHT.

got to be careful with that, if he maintain use of the property and didn't pay a market rent it could be considered a gift with reservation and still be taxed (as of 1986)

 

[Lammy]

GREAT I'll be able to afford an even better SECOND home to buy to let with no added penalty.

 

[Barrel of Fun]

got to be careful with that, if he maintain use of the property and didn't pay a market rent it could be considered a gift with reservation and still be taxed (as of 1986)

I assume as they owned half the house the law referring to gift with reservation was invalid. I am not sure of the legal ramifications. They were both property lawyers, so I guess it was above board!

I guess this would only work for wealthy subjects, who can afford to pay the market rent, which would be soaked up in income tax of the new homeowner. Unless you can find a way around that.

 

[seagullsovergrimsby]

Estate agents campaign this evening, call all vendors with properties on for up to £ 120000 and get them to increase the price to £ 125000

Surely the advice would be to take the property off the market for a week and stick 5 grand on the asking price when it goes back on the market as a newly registered property.

 

[Lammy]

got to be careful with that, if he maintain use of the property and didn't pay a market rent it could be considered a gift with reservation and still be taxed (as of 1986)

But he still owned half the house. Perfectly legit. My Mum and Dad are doing the same thing. It makes sense. You can't tax a couple only the indavidual.

In theory you could pass a £600k house to the sprogs with no tax!

 

[ditchy]

Gordon Brown has massively increased the stamp duty threshold from £ 120000 to £ 125000.

Thanks Gordon.

For nothing

oh and fags up 9p, wine up 4p and beer up 1p.

He quoted fags and wine increases in line with inflation .. i dont smoke but i didnt know they cost twice the amount of a bottle of wine !

 

[Gazwag]

He's lumped an extra £50K on the IHT nil rate band, I assume it means one his family is about to DIE

Thats over the next four years I believe

 

[Pevenseagull]

But he still owned half the house. Perfectly legit. My Mum and Dad are doing the same thing. It makes sense. You can't tax a couple only the indavidual.

In theory you could pass a £600k house to the sprogs with no tax!

I would guess that in this instance they are looking at bequeathing your nil rate band rather than the assett itself - that's fine - does the job

 

[Lammy]

Why doesn't he just abolish stamp duty for first time buyers?

This would truely help the young get on the ladder. It would also stop house prices rising to meet he threshold as current home owners would still have to pay the tax. He could then set a 25% stamp duty on all second homes. This would free up more of the more affordable houses for those that actually need them to live in rather than profit from. Simple really.