Stamp Duty trading scheme

sweetie

anyone have any info on this? Can't find a link to the finance bill.

Stamp Duty “Trade-in” scheme

Establishment of a Stamp Duty “trade-in” scheme, under which no stamp duty is payable by a person who accepts a traded-in property in exchange or part exchange for a new house/apartment. Stamp Duty will apply when the person subsequently sells on the ‘swapped’/traded-in house. Full details will appear in the Finance Bill.

ta

molloyjh

sweetie wrote: »

anyone have any info on this? Can't find a link to the finance bill.

Stamp Duty “Trade-in” scheme
Establishment of a Stamp Duty “trade-in” scheme, under which no stamp duty is payable by a person who accepts a traded-in property in exchange or part exchange for a new house/apartment. Stamp Duty will apply when the person subsequently sells on the ‘swapped’/traded-in house. Full details will appear in the Finance Bill.

ta

Haven't seen anything further on it either, but would also be very curious.

I can't see how this is going to work. You're talking about the seller of a property (would have to be developers as private owners couldn't afford to do this) taking a house at, say, 300k as part payment for a house of, say, 350k. They get 50K and a 300K house in a depreciating market. So they may only sell on the second-hand house at 280K and will then need to pay stamp duty on the 300k (about 15k or so is it???). That's 35K down the drain assuming they can even sell the house they've taken on.

I can't see why any developer would take on another property that they will need to sell in the same market just to get rid of one they have, especially when they would then have to pay stamp duty on top of it.

The only other scenario I can see happening is people swapping homes, but that is going to be a rare thing at best.

sweetie

molloyjh wrote: »

Haven't seen anything further on it either, but would also be very curious.

I can't see how this is going to work. You're talking about the seller of a property (would have to be developers as private owners couldn't afford to do this) taking a house at, say, 300k as part payment for a house of, say, 350k. They get 50K and a 300K house in a depreciating market. So they may only sell on the second-hand house at 280K and will then need to pay stamp duty on the 300k (about 15k or so is it???). That's 35K down the drain assuming they can even sell the house they've taken on.

I can't see why any developer would take on another property that they will need to sell in the same market just to get rid of one they have, especially when they would then have to pay stamp duty on top of it.

The only other scenario I can see happening is people swapping homes, but that is going to be a rare thing at best.

that is the part I'm interested in. thanks

molloyjh

sweetie wrote: »

that is the part I'm interested in. thanks

The problem with this is you'd want to be fairly sure that you're going to be in the new place for a while, as you'll end up paying the stamp duty on the price you paid rather the the cost at the time of selling. And you can't be sure that if/when you do move again that a) this scheme will still be in place or b) that you'll find a seller where you want move to that would be willing to partake in the scheme. You could well end up having to fork out for stamp duty twice - once for the house you're moving from and once for the house you're moving to.

I wouldn't be availing of this as a private owner unless I had absolutely no choice and HAD to move. There's too much uncertainty concerning the future of the scheme and how it will affect me in the long run as a result.

To be honest as a home owner looking to sell up and move on from my first property I'm absolutely disgusted that there was no real attempt to address the stamp duty issue. My generation (late 20's, early 30's) should be helping to drive the market by upgrading from 2 beds to 3/4 beds etc but can't due to stamp duty and negative equity. The only way anyone can afford stamp duty (on top of the 8-10% of the property price you need to raise) is with positive equity. With that gone, or at least all but, many of us can't afford to move. This only adds to the housing market woes.

molloyjh

Heard a little more about it from a friend last night who got some info during the day. This is only open to developers and is obviously a measure to ensure that they move their idle units. Why they would move one unit just to get another one in this market I'm not sure. Still not 100% on what they are paying the stamp duty on though.

Aleana

Benefits developer as Banks will be able to change loan type held. Development to investment designation. Swap also needs mortgage providers to play ball!!!