[Politics] Should Stamp Duty be scrapped altogether?

[keaton]

Inheritance Tax is unfair as it penalises hard working parents that wish to leave property to their children . The have every right to do so , why should children get penalised for having hard working and business savvy parents , they shouldn’t .

They don't and aren't. They just get a bit less

 

[Pevenseagull]

The Telegraph claims that stamp duty is disincentivising older people from selling up and downsizing their homes, locking millions of bedrooms out of the housing market...

Difficult to argue with that. But surely it disincentivises all other people, including myself, from selling up more frequently... contributing to a less dynamic and competitive property market, which can only result in higher property prices over time?

Residential stamp duty raises around £10bn per year in taxes for the UK.

Is stamp duty a fair tax all things considered, or should it be scrapped? ...Or is there a better type of taxation that could take its place?

The Telegraph are suggesting changes that would be attractive to wealthy old people?

Righto

 

[DJ NOBO]

Funny how many people love to preach about fairness and hate on second home openers, but also love a good tax-free house sale profit.

 

[mikeyjh]

Funny how many people love to preach about fairness and hate on second home openers, but also love a good tax-free house sale profit.

Quite - Have to laugh at descriptions such as 'hard working and 'business savvy', what we're mostly talking about here is unearned exponential rise in house prices which, of course, is most impactful on the very poorest who probably would inherit naff all anyway.

 

[Pevenseagull]

VAT is disincentivising me from buying a new 4K TV.

A new TV would be more energy efficient so VAT is bad for the environment. It needs to be abolished ... But only for things I want.

 

[Lenny Rider]

We were having a more general discussion about this in the pub yesterday.

The next Government, I think this one is already a busted flush, will have a huge issue over first time home ownership.

There‘s an age old argument about property ownership being a basic human right, my children and their contemporaries are all or have been in the last 5 years getting onto the ‘property ladder’.

Frankly IMHO it must be frightening at times, I recall my first house purchase in 1992, 3 bed mid terrace, £48,500, after the deposit and all residuals, stamp duty etc, we had a £40,000 mortgage, and that gave me sleepless nights at times.

30 years on, with the figures bandied around, how do these kids manage?

And surely it’s going to get worse before it gets better?

So scrapping stamp duty would be a start, but embarking on a government policy for a mass construction programme to provide affordable starter housing is a must.

Let’s wait and see if Messrs Starmer and Rayner are as committed to the youngsters once they are elected?

 

[beorhthelm]

Funny how many people love to preach about fairness and hate on second home openers, but also love a good tax-free house sale profit.

ignoring those that may need to move for work, change of circumstance. they may not be realising a net profit as they'll be buying something else at market rate. funny how people want a house to be seen as home not an investment, then love a tax on the increased value.

 

[Nobby Cybergoat]

Every tax has downsides in terms of how it's application will affect society.

Yes stamp duty has negative affects. But so will anything put in to make up the lost revenue.

As a nation we need to have a grown up conversation about how we raise the tax take we need (which is well more than we pay today given we spend much more than we raise and we'll need to spend more in the coming years). A conversation which isn't based on shrill self interest and tabloid driven ideology. Christmas is a time of miracles after all

 

[Dr. No]

Step forward @Dr. No

No.

 

[DJ NOBO]

ignoring those that may need to move for work, change of circumstance. they may not be realising a net profit as they'll be buying something else at market rate. funny how people want a house to be seen as home not an investment, then love a tax on the increased value.

But many sellers make a lot of money from house price inflation. Large sums in their bank account, from doing absolutely nothing. It hits those lower In the chain. The only reason these capital gains aren’t taxed is it would be an unpopular move by any government.
And the reason it would be unpopular is because for all the preaching about fairness, most people like gaining money for nothing.
There is no justification for not taxing house price profits.

 

[zefarelly]

Stamp Duty and inheritance tax both need reform, 40% IT is high, if anything the threshold needs staggering like income tax

Also loop holes need tightening up. Thats the key to making things fairer.

As a rule of thumb, If ther Torygraph think its a good idea, then it will be . . . . . . for the top 5%

 

[rogersix]

Inheritance Tax is unfair as it penalises hard working parents that wish to leave property to their children . The have every right to do so , why should children get penalised for having hard working and business savvy parents , they shouldn’t .

is that really all you can see from your vantage point?

shame

 

[rogersix]

We were having a more general discussion about this in the pub yesterday.

The next Government, I think this one is already a busted flush, will have a huge issue over first time home ownership.

There‘s an age old argument about property ownership being a basic human right, my children and their contemporaries are all or have been in the last 5 years getting onto the ‘property ladder’.

Frankly IMHO it must be frightening at times, I recall my first house purchase in 1992, 3 bed mid terrace, £48,500, after the deposit and all residuals, stamp duty etc, we had a £40,000 mortgage, and that gave me sleepless nights at times.

30 years on, with the figures bandied around, how do these kids manage?

And surely it’s going to get worse before it gets better?

So scrapping stamp duty would be a start, but embarking on a government policy for a mass construction programme to provide affordable starter housing is a must.

Let’s wait and see if Messrs Starmer and Rayner are as committed to the youngsters once they are elected?

are you implying that for the last 12 years, the tory party has not been committed to the youngsters?

presumably, more involved with the business interests of their donors

philosphy, again, i spose

 

[Blue3]

Keep it but make all first time buyers exempt

 

[Live by the sea]

Exactly - children who have hard working/business savvy (or just rich) parents are already advantaged by being brought up in a life of relative comfort. Why should they get a further reward of inheritance, purely because they were lucky enough to be born into that family?

There are plenty of hardworking, loving parents who are unable to give much to their kids on inheritance. An IHT redresses that balance somewhat.

Family money should be kept in the family if that’s what the money earner wants. Not everyone is equal , hard working business savvy people should be allowed to pass their assets onto whoever they want .

 

[Live by the sea]

There are lots of hard working people who earn a good salary , I know plasters , plumbers etc that earn £3k a week but many are not business savvy , they spend their money on drink and enjoying themselves, rather than investing in shares / property and for their future .

People that are business savvy and grow their money should be allowed to leave it all to their children / family .

 

[beorhthelm]

But many sellers make a lot of money from house price inflation. Large sums in their bank account, from doing absolutely nothing. It hits those lower In the chain. The only reason these capital gains aren’t taxed is it would be an unpopular move by any government.
And the reason it would be unpopular is because for all the preaching about fairness, most people like gaining money for nothing.
There is no justification for not taxing house price profits.

the reason for no CGT on primary residence (it is paid on second homes) is it would be grossly unfair to take large cut of someones value when they need to move. its only when downsizing or moving to a cheaper area that people see a net profit from selling their inflated homes.

 

[rogersix]

Family money should be kept in the family if that’s what the money earner wants. Not everyone is equal , hard working business savvy people should be allowed to pass their assets onto whoever they want .

what if your father inherited half of shropshire?

 

[rogersix]

There are lots of hard working people who earn a good salary , I know plasters , plumbers etc that earn £3k a week but many are not business savvy , they spend their money on drink and enjoying themselves, rather than investing in shares / property and for their future .

People that are business savvy and grow their money should be allowed to leave it all to their children / family .

a plumber on £150k p.a.?

you've not touched bases with reality for a while

 

[Swansman]

Family money should be kept in the family if that’s what the money earner wants. Not everyone is equal , hard working business savvy people should be allowed to pass their assets onto whoever they want .

People with a lot of money does not work harder than people without a lot of money so you can scrap the whole "hard working" thing.