Stamp Duty

[bednobs]

finally, a MUCH better way of doing things!
http://www.bbc.co.uk/news/business-30293477

[ladybirder]

Absolutely. About time.

[BRIGHT SPARK]

Is the 10% rate (over 250k) to remain in Scotland as proposed for 2015?

[Jomlett]

Yes...In Scotland from April 2015 stamp duty is being replaced by Land and Building Transaction Tax (LBTT), which will be applied like income tax. There will be a tax-free allowance of £135,000 on each transaction. Above that there are three bands:

• Between £135,001 and £250,000 the rate is 2%;

• Between £250,001 and £1m it is 10%;

• Above £1m the rate is 12%.

[BRIGHT SPARK]

Thought so Jom......the 10% rate is a kick in the teeth!

[SirOracle]

Nice to see the chancellor following the SNP in Scotland,despite his derision of this,only a couple of months ago.

The proposed rates from April 2015,in Scotland will be

£0 to £125k Rate zero
£125k to £250k 1%
£250k to£500k 2%
£500k to £1million 5%
Over this 7%

[Old_Geezer]

An even better way would be :

£0 0%
Over this 0%

Then there's no move moving tax.

Am I right in thinking there is an island of saving from about £1,001,000 to about £1,125,000 ? Or have I miscalculated ? Just wondering for when I buy next you understand.

[Old_Geezer]

And no one can explain why the extra word put itself in the middle of the sentence. This world gets less & less rational every day.

[BRIGHT SPARK]

Sir O......are these new proposed rates...as they differ from the ones announced a few months back?

[SirOracle]

no Sparkie....I think these rates were proposed by the SNP initially,but the Bill has yet to be passed by the Scottish Government.

[SirOracle]

Where are you getting the 10% rate from?

[BRIGHT SPARK]

Sir O...I thought the proposals were as Jomlet...@16;39

[SirOracle]

Sparky Don't know where Jomlet got figures from.

Try www.ibtimes.co.uk/scotland-scrapping-stamp-duty

This gives approx. the figures I gave

[Ouzel]

According to this BBC News article, Jomlett is correct :

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-30297932

[SirOracle]

A report was published in 2012 on this topic,and as far as I can see none of the rates have been actually decided yet.

You can read the Consultation report as noted below:

www..scotland.gov.uk/resource

There are only 60 pages of it,so it will make good bed time reading for you.

We will have to await the decision of the Scottish Parlaiment to see what rates they apply.

[janbee]

Better still, abolish it altogether.

[buildersmate]

Sir O
The figures announced by Swinney a few weeks ago are in line with Jomlett, not in line with yours mentioned above.
The crossover point at which the proposed Scottish rates become more costly than the new UK rates occurs at around £270k purchase price.
Outside of main cities property in Scotland is less costly than much of the UK but it will be interesting to see how the Scottish people react to it.

[ludwig]

The so called 'slab' method, was always a ridiculous way of applying a tax.

It would only make sense if you wanted to actually prevent something happening. i.e prevent people buying and selling property for more than 250k.
Assuming they don't want to prevent that happening, it's a no-brainer to replace it with something sensible.

[weecalf]

So Georgies big publicity stunt is gonna help how many people living on the bread line not house owners .

[BRIGHT SPARK]

I believe the new Scottish rates will have a crossover point of £324.280...if they remain as proposed a few months back.

[buildersmate]

I don't think so. The proposed Scottish rates would have had a crossover point of £324k with SDLT until yesterday.
Unless Mr Swinney decides the change his proposal, the reduction in SDLT at the lower end reduces the relative crossover point now to roughly where I mentioned above.
Life's so short to bother to work it out exactly.