Mini-budget in April - stamp duty issues

J

Janman07

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Hi,

I am in the process of buying a property and contracts are being prepared. I am just wondering whether there will be any pleasant or unpleasant surprises in the mini-budget re: stamp duty.

What is the general consensus? Will there be a stamp duty holiday to try and kick start the property market or will stamp duty rates on new or old houses increase?

I'm not sure whether I should push to close contracts in March or stall until April!

Pleased to hear opinions.
 
Personally, I'd wait, as I can't imagine they'll increase stamp duty, but I'm sure there are plenty of threads discussing this on the "Budget Forum"
 
If there are, I can't find them.

I am concerned that they might introduce some level of stamp duty on new houses for non first time buyer owner occupiers, i.e. me.
 
Janman07 said:
I am concerned that they might introduce some level of stamp duty on new houses for non first time buyer owner occupiers, i.e. me.
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I'd be surprised if they did, purely because that could reduce the already tiny volumes of house purchase transactions. In addition, it would reduce the economic incentive to buy new houses as opposed to second hand: again, something the government is unlikely to want.
 
Janman07 said:
If there are, I can't find them.

I am concerned that they might introduce some level of stamp duty on new houses for non first time buyer owner occupiers, i.e. me.
Click to expand...



The VAT income that is tied up in unsold new houses is a significant revenue source for the government - if anything they are likely to waive stamp duties to release the VAT revenues.

BTW - am in the same boat as you - and hoping as well.
 
Think it's somewhere between €0.5bn and €1bn of VAT tied up isn't it?
 
I would wait and see what happens. If they're smart, and they're not, they should drastically reduce or remove stamp duty, if not permanently then for maybe 18 months, to try to encourage some increased activity in the housing market.
 
We've been discussing this as we are in the process of selling where we are and looking for something else. I think the government will increase stamp duty on the higher end property, but reduce or remove stamp duty on the lower end property, so my guess is under £350K you either won't see a change, or it will be to your benefit but over this it won't.
 
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