What is the point of stamp duty on houses in the UK?

Answer 1

The literal answer is to raise revenue for the government.

The thinking is that prices go up so fast that most people make a profit when they sell their house. The government takes a small slice of the profit to pay for essential services. The reality is very different - in effect stamp duty helps to ramp up house prices and makes it unattractive for people to move.

Answer 2

The original purpose was to pay the fee for getting a legal document stamped (literally) with a wax seal.

Over time the stamp duty limits have not increased with house prices hence stamp duty is now extortionate. Instead of being a redistribution of wealth from the rich to the poor it now affects most people and can be a sizeable chunk - affecting mobility.

Answer 3

It's a legacy tax that raises revenue disproportionately from the areas of the country where house prices are highest (ie London & the South East).

For example, in East Anglia the average house costs £182,000 - which costs £1,820 in stamp duty.
In Greater London the average house costs £317,000 - this costs £9,510 in stamp duty.
Meanwhile, a house in central Leeds which costs the average Yorkshire price of £147,230 attracts no stamp duty whatsoever.

If you can explain how that taxing system is fair, you're better than I.

Answer 4

i'm not from the united kingdom and issues might want to be different there... survey: you could ask the municipality if an old survey is available, if not something replaced, i'd not hardship getting one - this oftentimes is major even as traces of sources at the prompt are not sparkling Solicitor: you do want that because the identify has to regulate and the identify of the sources's contemporary proprietor needs to be shown Land registry fee: i guess it truly is what we call a land move tax, it truly is depending on the sale fee of the sources - authorities likes funds :) Lender's association fee: it truly is the fee you pay for the identify to be develop into the present lender's call (except you repay, the lender has the right to the sources) you received't have shifting prices extra prices: i might want to signify a house inspection, there might want to be hidden complications that you at the prompt are not conscious of and an inspector might want to talk about (searching on your recognize-how of structure) and if there are any major complications you're waiting to shrink the sale fee (this only occurred to a collegue of mine) appropriate to the private loan take back - i do not recognize what the regulations are interior the united kingdom yet i strongly advice to work out a private loan broking service as you may want to locate more beneficial effectual bargains there, also, a freelance is major it truly is bomb evidence, what if the landlords makes a decision that he needs his funds NOW, you should pay it or free the abode, or he dies and his sources needs to be accrued? a economic company/different lender received't supply you that worry as they are finacially 'more beneficial shelter' solid success and optimistically congrats on your new abode possession

Answer 5

Stamp duty is 1% of the total amount on any property that is sold for over £120,000, unless the property is in an exempt area. It then goes up to 3% on anything that is sold for more than £250,000.

Answer 6

Its just another tax which is used to fund all the things the government spend money on.

Health service, education, roads, etc etc ...

Answer 7

Any time there's money going spare, the government taxes it. It's what pays for the services and the bombs. If you don't like it, vote.

Answer 8

Just another way we are being screwed (taxed) like the TV licence, etc.

Answer 9

Just another way for the government to bleed us dry

Answer 10

Its just one of those little taxes that should be scrapped and incorporated into income tax. But that would make income tax seem very high and people would complain.