Stamp duty: why don't we start a national protest!

There is facility on the no10 website to create an online petition. There might be an applicable one already. I'll have a look when I get a chance.

The trouble with getting rid of one tax is that the Government will find another way of taking it from us. The will either increase taxes in another area or, even worse, will cut services.

Sadly, contrary to popular belief, the Government is not a huge bottomless pit of cash - The National Health Service and the Welfare State take up a vast amount of fiscal resource and the remaing Governmental departments are left scrabbling about for what's left.

I'd rather pay a discretionary tax like Stamp Duty than one I can't avoid like an incrase in VAT or fuel duty.

There are mechanisms that can be used to avoid stamp duty liability, such as putting the property into a family trust. I won't pretend I know much about it, but I guess that when the property is transferred stamp duty is paid based on the market value. As market values are low - now would be a good time to do this. Assuming you have the funds available to pay the stamp duty.

Tony

Stamp duty is a poor system and an unfair tax (just what exactly is it for, anyway?) Paul makes a sensible point that public services must be paid for and I'm not generally in favour of populist tax cuts for cuts' sake. However I do think the stamp duty system could be made much more transparent and fair. Having said that, from my personal perspective the current focus on stamp duty is a bit of a red herring. The problem is not that stamp duty is putting people off buying houses, the problem is that the credit crunch, inability to get a mortgage and fear of the future is putting people off buying houses. Changing stamp duty won't really help with any of that.

The bottom line is that the Gret British public will be taxed £Xbn per year in order to, hopefully spend £X-y bn per year. A cut in Stamp Duty will mean that the government will either have less to spend (on hospitals, education, defence, and other public goods) or it will have to incrase its fiscal revenue from somewhere else.

Whilst I am not a fan of paying tax, as an accountant, I do understand how fiscal finance works. Whislt Stamp Duty may be seen as a somewhat arbitary tax, it is one that you can avoid by not buying a house over the threshold or not moving house. Additionally, it's a tax that I'd expect to pay only three or four times in my entire life.

The tax that REALLY annoys me is the tax levied on fuel. This not only harms ordinary people trying to get about their daily life, but it also hurts British industry as a whole as it makes manufacturing and transport of British goods more expensive and thus decreases the country's overall competitiveness.

The stamp duty issue could be beneficial for 'kick' starting the market in my opinion. However, whether the government chooses do do this or not they do need to decide on this issue and come forward and announce their decision. There is little room for dithering in the present housing market. By not making their decision can ultimately make the market stall further with people holding off elling or buying thinking the stamp duty maybe cut.

Dithering Over Stamp Duty

I agree wholeheartedly with the comment above...There is no benefit to be gained from dithering and this will undoubtedly have a negative effect on the market.

Uncertainty is NEVER a positive indicator for any economy and why the current Government does not realise this is entirely beyond me!

The recent news via the dispatches programme further re-enforced my belief that management of the housing market needs to be well thought out and managed.

The programme showed how the banks were happy to allow 125% interest only mortgages and 10 times earnings borrowing. That is disgraceful in my opinion.

Unfortunately the market needs to go through a correction to a more stable sustainable level.

It will be intersting with the announcement of stamp duty taking a 12mth holiday whether this kick starts the market.

Cant say am convinced. The fact it is a declared 12mth period doesnt add thesame advantages in my opinion.

it won't affect the London market as it is too low. Can you buy a property in London for less than 175000?

Lip Service

I think the move is simply a case of lip service, an attempt to allay fears that the government are taking no action, by doing something that has little real impact for the vast majority. A rather transparent attempt at duping the populace into feeling the Government understands their predicament, and is actually taking steps to alleviate the problems.

I agree with Paul, reducing Stamp duty, which is a discretionary tax applied in a set of circumstances that may only arise, once or twice in a lifetime, has markedly less fiscal impact at Government levels, than something akin to a 50% reduction in fuel duty, or say doubling the individuals personal tax allowance. Which are about as likely to happen as Tony Blair and Gordon Brown tying the knot in a civil ceremony, on the moon. Such measures would have a real, immediate and positive impact on individuals standard of living, but also, due to the spending we are currently committed too, mean that the Goverment would then have to raise this money another way. Probably through Stealth taxes, or if push comes to shove, the introduction of new legistation (pay per mile for road tax? Congestion charges? It is coming...)

Government is all about proclaiming loud and clear that they are giving with one hand and while whispering and hoping nobody notices them taking double what they have given, with the other.

Old thread I know, but George Osborne has done a highly canny thing with his Stamp Duty tweak: very clever given that a recent debate about reform - supported by many Conservatives - was bulldozed by the government. Once again, nothing particularly to ease the property market crisis, no increase in housing supply, but a tax cut for most buyers except those buying properties worth more than £1m.