SDLT - Should it be abolished or put on hold to ignite sales.

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    SDLT - Should it be abolished or put on hold to ignite sales.

    I think that is it about time that the government stops the war on the landlord and starts to reform the sector in a positive manner and scraps SDLT for all purchases up to £500K.

    This would help to spur the market and bring on new properties on to the market asap.

    RICS and other organisations are suggesting that the Government do this too because it has other major benefits.

    For example : Landlords are more likely to come out and spend the money that they would save on the SDLT and put it back into the economy.


    #2
    You should put the idea to your local MP and get him/her to write to the Chancellor and CEO of HMRC.

    Also ask for raising the threshold for starting IHT from £325K to £1 Mil ( excluding main residence which shall be 0% tax rated ).

    Comment


      #3
      Originally posted by Gordon999 View Post
      (excluding main residence which shall be 0% tax rated).
      Might this result in lots of octogenarians moving into large, expensive houses for tax efficiency?

      There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

      Comment


        #4
        With the covid19 crisis and huge costs, taxes will have to go up & benefits curtailed, certainly UC pegged back to pre plague levels.

        By all means ask but I doubt they'll agree.

        Plus the other impending F U.
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          The problem with doing anything which encourages people to buy property is that it encourages property price inflation. There is no point abolishing SDLT if it means that prices increase by more than the SDLT would have been.

          Comment


            #6
            It was precisely to discourage people buying second homes that SDLT was made so deliberately punitive and inhibitive.

            But I would say there is an economic argument for scrapping that higher rate SDLT for FHL (Furnished Holiday Lets) that qualify for 100% business rate relief (ie, they are the 'only' FHL the owner owns, and is available to let to holidaymakers for the required 5 months of the year).

            Tourism is a HUGE industry in so much of Britain, and brings money INTO the local economy and so has a net beneficial effect (overall!) (Most tourist areas want to encourage more holidaymakers)(well, until it gets to the situation Venice is, which is so overrun it has to limit them!) (understandably).

            The negative impact on local area of FHL properties is that it does still reduce the housing stock available to locals. (But then, locals may have to choose between cheaper houses and not having tourism-related incomes)(eg, restaurants, entertainment for holidaymakers etc etc)

            I think the situation of FHL is different from BTL, as, arguably, the latter simply reduces the ability of people to buy their own houses. (Does it??)

            Comment


              #7
              Depressingly, I do think that any financial 'instrument' such as SDLT can result in higher house prices - eg, if SDLT is reduced/cancelled, that 'spare money', as said above, will just then go into the price of the house.

              The same thing happened in my generation in the 80s, with the emergence of the Dinki - Double Income No Kids - couples, who were BOTH earning, and therefore that 'extra money' (ie, from the now-salaried wife) fuelled house price rises.(They could afford to pay more to snap up the scarce housing, so they did.)

              Comment


                #8
                I do wonder how price elastic/inelastice the punitive SDLT on second properties has been overall. ie, has it made any difference to the number of people buying more than one property? I suspect not a great deal, and it probably now is a 'nice little earner' for the government, who will be very unwilling to sacrifice any revenue stream (especially now post-Covid!)

                Comment


                  #9
                  Originally posted by Gordon999 View Post
                  You should put the idea to your local MP and get him/her to write to the Chancellor and CEO of HMRC.

                  Also ask for raising the threshold for starting IHT from £325K to £1 Mil ( excluding main residence which shall be 0% tax rated ).
                  Wow you are right. IHT is another one.

                  IMO enough is enough now and we are all being taken advantage from by the super rich.

                  Comment


                    #10
                    Originally posted by Lizbeth View Post
                    I do wonder how price elastic/inelastice the punitive SDLT on second properties has been overall. ie, has it made any difference to the number of people buying more than one property?
                    I stopped buying several years ago. Multiple factors involved, but I think additional rate SDLT was the main one.
                    There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

                    Comment


                      #11
                      Originally posted by Lizbeth View Post
                      I do wonder how price elastic/inelastice the punitive SDLT on second properties has been overall. ie, has it made any difference to the number of people buying more than one property? I suspect not a great deal, and it probably now is a 'nice little earner' for the government, who will be very unwilling to sacrifice any revenue stream (especially now post-Covid!)
                      It probably is a nice earner for them. But it also discourages a lot of people from buying property especially where prices are far higher than the average normal.

                      They should remove it for buyers up to £500K until the market recovers again because I can't see them getting much out of it again for some time and sellers would be silly to try and put it back on top in this climate.

                      Comment


                        #12
                        Originally posted by doobrey View Post

                        I stopped buying several years ago. Multiple factors involved, but I think additional rate SDLT was the main one.
                        As with any of these things, though, the effects are complex. It made me less inclined to buy anything. It also made me less inclined to sell anything.
                        There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

                        Comment

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