[Closed] I think Mr Osbourne just saved me £1000 in stamp duty

Looks about right

125000 250000 125000 2500
250000 925000 675000 33750
925000 1500000 575000 57500
1500000 2500000 1000000 120000
213750

Calculated for a 2.5M house is £213750 though!

Yup just saved me 4.5k, glad the solicitors have spent so long pluckin around with the purchase, i put the offer in back in august!

[url= http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm ]http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm[/url]

use that calculator and get it straight from the horses mouth.

Correct! Seems that unless you're spending more than £500k you're better off.

£975 K is the breakeven point

edit: read across error 937.5 K

Correct! Seems that unless you're spending more than £500k you're better off.

That's the figure I came up with. I'm surprised only 2% of purchases are over 500k to be honest.

EDIT: I think I'm thick

it also means that my houses at the bottom end of the SDLT bands are now much more accessible.

It's tough enough drumming up 10% for the deposit. Finding another 2-3k grand, cash for conveyancing fees and SDLT is a mission.

Owning a house that's worth about £135k it makes me quite happy 🙂

The break even point is over £900k - there is also a slight anomoly in that the saving at 499,999 is zero also but that's more of a function of the old flawed system

Actually there are a couple of crossover, this graph explains it well

[img] [/img]

That's a far more sensible system, and removes the blip around the £250000 mark that made houses difficult to value and market.

@mefty thanks for that, interesting graph

Just saved me £900 too, I'd still like to slap Gideons silly face though 😀

Doh, offer in on a house for £250k.
Same same.

So, the super-rich mansion owners will be paying more tax?

'king Tories 😉

mrjmt - Member
Doh, offer in on a house for £250k.
Same same.

It's OK though, you can increase your offer without paying loads more tax!

😕

Doh, offer in on a house for £250k.

I'd start hoping that they don't now want £260k for it!

'tis good. Hopefully make my house easier to shift as its valued at £275k.

[img] [/img]

......must keep the Bubble going until the next election!!!

*obviously I aint no Jamie

** this will actually save me some cash when we move!

Bravo ^

Pants - would have saved me about £3000 - we completed on Nov 24th...

Oh well..

DrP

Bastards kept all this quiet, I guess they needed to, to prevent a housing market stall. But would have saved me a few grand.

Completed 2 weeks ago 🙁

We are just in process of signing contracts so if all goes well he has saved me 5k 🙂

OT - Never noticed before, but badger has a mirror on his wall so he can watch himself vigourously pumping and then spurting his gunk everywhere. Perhaps he has delusions of Christian Bale?

I think Gideon has noticed that the SNP changes away from stamp duty was a PR goldmine! 😆

Just saved me £4k..... New bike me thinks (which probably means the sofa she's been going on about).

Consider yourselves fortunate the new duty system in Scotland will cost us about 17k more if we move after April 1st. That's on about 500k budget, I cannot wait until personal taxation is controlled in Scotland....

The sale of my late Mum's house is due to complete tomorrow - the purchasers will benefit to the tune of £4300.

Beginning to wish I had waited to sell it as the house was sold in less than a day and I might have got a couple of grand extra assuming the buyers had a budget which included stamp duty.

Consider yourselves fortunate the new duty system in Scotland will cost us about 17k more if we move after April 1st. That's on about 500k budget, I cannot wait until personal taxation is controlled in Scotland....

The socialist wonderland north of the border has to be paid for somehow.

juanking - Member

Consider yourselves fortunate the new duty system in Scotland will cost us about 17k more if we move after April 1st.

According to the calculator, it's £12300 on a £500000 house?

No offence but you're buying a house worth more than 3 times the national average, I promise I will weep for you but there's quite a long queue of others I must weep for first, so it might not be for a few days.

uponthedowns - Member
The socialist wonderland north of the border has to be paid for somehow.

Be no bother if we weren't subsidising the BritNats.

Socialist wonderland. 😆 not quite but we'll get there!

500k house in Scotland? Oh the hardship! 😆

I don't want to worry anyone... but I am sure I heard that purchases that were already in process would be taxed on the old system!

Should come in handy for me though - we haven't got to the point of offering as yet, and it should help selling the current house too 🙂

Looks like we'll be saving £2,200 on the flat we're in the process of buying at the moment - which is nice.

and I might have got a couple of grand extra assuming the buyers had a budget which included stamp duty.

Sadly, I suspect plenty of sellers will think like this...

We completed on Friday last week 🙁

Really happy with the house, but a bit of an arse to know we could have saved about £4k. About time the old system was changed though, it was a stupid system in today's inflated market...

Northwind, under the new rules its 27.3k, under the old and existing rules until end March its 15k. Not forgetting this is offers over so the 500k would be nearer 550, the extra 50k would cost 1.5k under the old rules, it costs 5k under the new. In the socialist dream, 0-135k =0, 135-250k is 2% then >250k is 10%! I think what they've done for the reform for you guys is far more sensible than Scotland.

Oh and BTW this is Aberdeen, the prices here are mental and the oil industry is about to have its biggest cull in 10 years.

Think of those who'll spend their whole lives renting… and then stick your rants about paying taxes up your arse.

juanking - Member

Northwind, under the new rules its 27.3k, under the old and existing rules until end March its 15k. Not forgetting this is offers over so the 500k would be nearer 550, the extra 50k would cost 1.5k under the old rules, it costs 5k under the new.

You said your budget is £500000 not £550000 but OK, it does put you further down the tears queue though.

Sorry…

Right, yes, this looks a sensible reform of a previously very arbitrary and market skewing tax.

On a £500,000 property, the Stamp Duty would currently be £15,000 (3% of £500,000). However, from 1 April 2015, the LBTT figure for a purchaser will be £27,300 (0% up to £135,000, 2% of the portion between £135,000 and £250,000, plus 10% of the part between £250,000 and £500,000). Then that extra 50k will cost 5k more in tax rather 1.5k. I used an actual calculator.

Stealth edit there north wind.

Yup, Brodies calculator is completely wrong from £500K up 😆 But, point stands, you gave a lower value than you're actually planning to spend.

I don't want to worry anyone... but I am sure I heard that purchases that were already in process would be taxed on the old system!
Should come in handy for me though - we haven't got to the point of offering as yet, and it should help selling the current house too

It says the new deal goes into play for all from tonight. You can decide to use the old or new system if you are mid purchase.

I'll be using new and using the £1000 I save on a sofa for the new house.

Would have saved us £660 5 weeks ago.. I was fuming until I spoke to a friend who would've saved £4k under the new rules and it was only a week ago. Safe to say he is ******* raging. I think I'd probably be sick!

At least that puts paid to the idea that this is the most RW government ever!

500k? In Scotland? Which half of the country are you buying? 😀

Yep, nothing at all to be criticised in tax cuts for people who can afford expensive houses, and benefit cuts for people who can't.

Oh hey, if you buy an average value house, this saves you £650. If you buy a house costing 3 times as much, it saves you £4900. That seems totally reasonable too.

More like benefit cut for those not entitled and raising the personal tax alliwance to take thousands of the lowest paid people out of tax altogether wether they were claiming benefits before or not. I like the way some people like to cherry pick the headline grabbing bits of policy change and conveniently forget the bits that don't support their own views.

Yep, nothing at all to be criticised in tax cuts for people who can afford expensive houses

Yet in your own post you then go on to say that it benefits someone buying an average house by £650 - which is not to be sniffed at. And while some people buying houses for more than that will benefit more, some others will also pay more in tax.

I'm in the process of buying a place myself and will save a couple of grand - and while the house I'm buying is above the UK average it's less than the average here in London.

Had a £300,000 house on the market for ages up here in sunny West Yorkshire. That means £5000 stamp duty now against £9000 before. Let's see if it makes any difference. Sadly, though, I paid £12000 stamp duty on the house I bought last year!

I believe it used to be that the "mansions" in London were bought by the owners' companies so they avoided taxation - has this been stopped too (or did I imagine it anyway) ?

I believe it used to be that the "mansions" in London were bought by the owners' companies so they avoided taxation - has this been stopped too (or did I imagine it anyway) ?

There was already a punitive 15% tax rate in place for that, for residential properties over £500K bought by companies.

wobbliscott - Member

More like benefit cut for those not entitled

Real terms benefit cuts for all working age benefits- is nobody of working age entitled, in your view? The headline grabbers are designed to make us think it's all immigrants and fraud. (there are a few cases where separate measures have countered the freeze, in fairness- childcare being the main example)

epicsteve - Member

Yet in your own post you then go on to say that it benefits someone buying an average house by £650 - which is not to be sniffed at.

And neither am I sniffing at that- though the reality is, give it a little time and house prices will just swallow the "saving", which'll further inflate the housing market and make homeowning unobtainable for more people. But giving a [i]7 and a half times bigger[/i] discount to someone who can afford 3 times as much and calling it fair is very sniffy.

And once the market corrects itself, every taxpayer ends up paying for this via the tax loss, and the only lasting result will be higher houseprices.

Anyone seen a cost breakdown, out of curiosity? Intrigued to see how much of the expense of this "fair" measure is going to go to the above-average housebuyers.

Savings in tax will be on house prices by the end of the week, 1.8 billion out of public funds and into housing equity.

'Fair measure'? London pays more stamp duty than Wales and Scotland combined but doesn't see the benefit as the needy regions suck it up.

Intrigued to see how much of the expense of this "fair" measure is going to go to the above-average housebuyers.

which works out as a tax cut of £4,500 when buying an average £275,000 family home.

He also claimed that only homes that cost just over £937,000 will see their stamp duty bill go up under this system.

* the actual average in wealth terms of everyone and not the actual average of the wealthy buying more assets

Sorry, I phrased that badly- what I meant was, how much of the £.8 billion quid that it's going to cost, will go to average housebuyers saving £600, and how much of it will go to above average housebuyers saving more.

I think the real beneficiaries of this are not the folk buying but those selling, especially at the £250k and £500k levels, as there aren't those steps in there anymore. We marketed/sold a few years ago at £250k when we could've marketed/sold at probably £265k based upon the houses selling for +£250k.

Cool so more prices rises just what our housing market needs and especially that there London.

@NW no idea then but not as bad as the question i answered

'Fair measure'? London pays more stamp duty than Wales and Scotland combined but doesn't see the benefit as the needy regions suck it up.

I'll let you google the population of London and then you can let us know just how mindblowing that little tit bit you provided is.

The economic recovery is based upon property and rent. Wages have stagnated which is why tax receipts are lower than expected. So Gideons solution?

Throw a tax cut to house buyers where the wealth is already concentrated.

It's a good change, shame for those who just missed out on benefiting but always happens that way. Wondering what impact it will have on properties over £1m, for those with properties at that level but more modest incomes stamp duty can be a year's + income which is hard to justify.

I think the real beneficiaries of this are not the folk buying but those selling, especially at the £250k and £500k levels, as there aren't those steps in there anymore

I agree. We bought at £250k last year. House was marketed at £265k but no one was ever going to pay the extra stamp duty even though it is a bit bigger than other similar properties also selling for £250k at the time. We'll now see the realisation from that 🙂

There's more than a few commentators suggesting this will push prices up as buyers think they have a little more money to spend, and sellers think 'oh, buyers have a little more spare cash'.

Adding more money into a market which has been blown out of all proportion from loose lending (oversupply of money), which also means a lower tax take when the tax take is already too low, is the gesture of either a complete economic idiot or an electioneeering politician desperate for voters to feel good at a time of static living standards and very low economic growth.

I'll leave it up to you to decide. All you need to know is that house price growth remained stalled again in November...

[i]There's more than a few commentators suggesting this will push prices up as buyers think they have a little more money to spend, and sellers think 'oh, buyers have a little more spare cash'. [/i]

Yep, heard this today too - either they read my earlier comment or they've all finally actually started to think rather than just quote GO.

500k? In Scotland? Which half of the country are you buying?

About 3 square inches of prime aberdeen realestate i reckon