The Official Budget 2021 thread

[AtW]

Stamp duty will be replaced with CGT on all sales...

[mattster]

It does show though how stamp duty has such an influence on the housing market. It certainly needs to be reformed, whether that be with the talked about yearly 'property value tax' or switching so that the seller and not the buyer pays stamp duty.

It's a "bad" tax, in that it discourages moving, when moving could be advantageous for both the mover and the economy. With house prices so high, stamp duty is serious slug of cash on a family home, especially in the south east. Switching to a better job for an extra 10k is much harder to justify if you need to spend £50k on a move to do so. Something like a land value tax would make much more sense, but would be wildly unpopular with much of the Tory core vote, as would any sort of CGT on primary residences, or indeed charging stamp duty to the seller.

[AtW]

If it’s advantageous to the mover then Treasury wants their cut...

[SueEllen]

If it’s advantageous to the mover then Treasury wants their cut...

The Treasury does get its cut when home owners move from one property to another.

Think of the new furniture purchases, kitchens , bathrooms, other decorations, flooring etc that people purchase which has VAT on them.

[AtW]

The Treasury does get its cut when home owners move from one property to another.

Think of the new furniture purchases, kitchens , bathrooms, other decorations, flooring etc that people purchase which has VAT on them.

No, that’s when Treasury takes their cut from people who sell kitchens, floorings etc...

”Stamp duty” is really “VAT” on house purchases, only worse in that it is charged multiple times, and this can be deemed as proxy for lack of CGT on main house sales.

[Whorty]

This is about time ....

Contactless payment limit to rise to £100

[AtW]

Cash to be banned in 2031...

[Whorty]

Stamp duty will be replaced with CGT on all sales...

Can't see this personally, will kill the top end of the housing market unless the CGT is on 'profit' over (say) £50k, is index linked and tapered by length of time you live in the property. You'd also have to take into account money spent on the property to enhance it so it would all be a bit too complex. We already pay VAT on DIY (even a new kitchen etc), so would be harsh to then add CGT on top.

[Whorty]

Cash to be banned in 2031...

I first went to Iceland for work in 2007. It was pretty much a cashless society even back then. Didn't take any cash with me, used card for everything from choc bar, taxi, pint in the bar etc. We're catching up, but way behind some countries.

[AtW]

Parliament is suspended!

Rishi seen led out in handcuffs by the police!