Latest news with #stampduty
Bloomberg
3 days ago
- Business
- Bloomberg
FTSE 100 Set to Outperform as Trade Worries Rattle Markets
The Nationwide data is expected to show zero growth in house prices in May compared to April, with the yearly rate of growth seen slowing to 2.8% from 3.4%. It should indicate the market returning to normal after the spike in transactions in the lead up to the stamp duty threshold change at the start of April, which was followed by a slump in activity immediately after. Last week, data from HMRC showed a 64% fall in housing transactions in April compared to March after the stamp duty reversion. That's the largest month-on-month fall in record.
The Sun
5 days ago
- Business
- The Sun
Virtually unknown stamp duty loophole that means you pay TWICE – and who can avoid it
A VIRTUALLY unknown stamp duty loophole could leave you paying the tax twice. Cohabiting homeowners who buy their partner out following a separation may find themselves hit with the land tax more than once. 1 Stamp duty is, typically, a one-off payment you make if you buy a property or piece of land over a certain price in England and Northern Ireland. But if you bought a property with a partner and you're unmarried, you might have to pay stamp duty again if you break up and want to buy their share of the property. You'll only avoid paying it if the transfer is part of a formal divorce or separation agreement. The extra stamp duty you might have to pay depends on how much is left on your mortgage and the equity in your property (the part of your home you've already paid off). You'll only have to pay stamp duty again if the "chargeable consideration" is more than £125,000. The "chargeable consideration" is the total value of what you're taking on to own the property, such as the remaining mortgage and any equity. For example, if you pay your ex-partner £100,000 for their share of the equity and take on £200,000 of their mortgage, the total "chargeable consideration" would be £300,000. In this case, you would need to pay stamp duty on £175,000, which is the amount above the £125,000 threshold for residential properties. The rules about paying stamp duty after separating from a partner can be tricky, so it's a good idea to speak to a solicitor or tax advisor to work out exactly how much you owe. Keep in mind that you will likely need to pay for their services. The Sun's James Flanders explains how to find the best deal on your mortgage Simon Nosworth, partner at Osbornes Law, said: "If you're married you can be sheltered from having to pay stamp duty upon divorce when you're splitting up assets like a mortgage. "This is because you've got protection under the Finance Act. "However, if you're unmarried you don't have this protection. "Broadly it is unfair, but there is no way around it." What is stamp duty? STAMP duty land tax (SDLT) is a lump sum payment anyone buying a property or piece of land over a certain price has to pay. You pay the tax when you: Buy a freehold property Buy a new or existing leasehold Buy a property through a shared ownership scheme Land is transferred to you or property in exchange for payment, for example, you take on a mortgage or buy a share in a house The rate you pay depends on the price and type of property and certain thresholds. If you are a first-time buyer no stamp duty is due if the property is worth £300,000 or less. You'll also get a discount if the purchase price is £500,000 or less and will only pay 5% SDLT on the portion from £300,001 to £500,000. Those who aren't first-time buyers will pay different rates depending on the value of their new home: If it's up to £125,000 - no stamp duty is paid For the next £125,000 (the portion from £125,001 to £250,000) - stamp duty is charged at 2% For the next £675,000 (the portion from £250,001 to £925,000) - stamp duty is charged at 5% For the next £575,000 (the portion from £925,001 to £1.5 million_ - stamp duty is charged at 10% For the remaining amount (the portion above £1.5million) - stamp duty is charged at 12% You'll usually have to pay 5% on top of SDLT rates if buying a new residential property means you'll own more than one. An HMRC spokesperson said: "Stamp duty in these cases may only be payable on the share purchased, not on the total value of the property." How to pay the stamp duty You have to pay stamp duty within 14 days of any transaction date. If the deadline is on a weekend or bank holiday, you need to make sure your payment reaches HMRC by the end of the previous working day. You will need your 11-character unique transaction reference number to hand. This reference will always be made up of nine numbers and two characters (for example, 123456789MC). You can find this on your paper return or on your electronic SDLT5 certificate. You can pay online by clicking on the "pay now" button found via You can also pay by cheque, but must allow three working days for your payment to reach HMRC. Make your cheque payable to "HM Revenue and Customs only" and write your reference number on the back. If you've filed a paper return, you need to complete the payslip and send this with your cheque to: BT Stamp Duty Land Tax HM Revenue and Customs BX9 1LT Send your cheque (including a payslip or quoting the unique transaction reference) to: Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
South China Morning Post
28-05-2025
- Business
- South China Morning Post
Hong Kong's April lived-in home prices eke out 0.35% gain as stamp duty cut spurred deals
Hong Kong's lived-in home prices rose for the first time in five months in April, as transactions were spurred by a cut in the government's stamp duty for homes worth up to HK$4 million (US$510,000). Advertisement An index measuring home prices eked out a 0.35 per cent gain to 285.7 last month, from 284.7 in March, according to the Rating and Valuation Department on Wednesday. Transactions in the residential market jumped last month. Previously, buyers of homes worth up to HK$3 million were subject to a relaxed HK$100 stamp duty. This was extended to homes worth up to HK$4 million following the budget announcement in February. Homes worth up to HK$4 million accounted for a quarter of residential sales in 2024, according to CBRE. The cut in the stamp duty was likely to increase the share of this segment to 30 per cent of residential transactions, the property consultancy said. More to follow ... Advertisement
News.com.au
27-05-2025
- Business
- News.com.au
Victorian first-home buyer stamp duty concession scheme fails thousands
Thousands of Victorian first-home buyers are being slugged with massive tax bills as the state's primary support program for them falls short. It comes as analysis shows Victorian state opposition plans to raise the cap on the first-home buyer stamp duty concession program to $1m would add 204 suburbs to the list where market entrants don't have to pay stamp duty. Currently there are fewer than 20 where the median house price falls within the necessary parameters. 'Thrilled': one seller, three separate first-home buyers Australian Bureau of Statistics data shows there were 36,756 new first-home buyer loans issued in Victoria in the 2023-2024 financial year. The ABS stats show a further 1893 home loans were issued to first-home buyers purchasing an investment property in that same year. However, State Revenue Office data shows that just 32,849 payments were made under the first-home buyer concession scheme that waives stamp duty for purchases for up to $600,000 and provides a discount from there to $750,000. For a $750,001 home purchase stamp duty totals at $40,070, for a $1m purchase it reaches $55,000. Yesterday the Victorian opposition announced it would raise the cap to $1m in a move that would bring the state closer to the margins being offered in Queensland and NSW, as well as reflecting a federal government decision to raise the cap on their incoming Help To Buy co-buying scheme. Their modelling suggests it would help 17,000 people buy a home within a year, however would not be implemented until after at least the next state election in November, 2026 — as the party would have to first win office before it could be rolled out. PropTrack median house sale data shows there are currently 19 suburbs that fit beneath the $600,000 cap, but 204 would be applicable under the opposition's revision. Separate PropTrack sales data show that in the past week there were at least 263 homes sold in the past week would have qualified for the state's scheme on price, at the opposition's revised threshold 868 home sales in the past seven days would have. It would return former first-home buyer hubs to the list of areas available to them without having to pay a hefty tax bill, including Sunshine, Watsonia, Reservoir and Greenvale where the typical home today costs more than $750,000 and is beyond any form of stamp duty support. Real Estate Institute of Victoria interim chief executive Jacob Caine said with home values widely tipped to rise in the coming year, the state government should make the change immediately rather than waiting for the Liberal party to take it to an election. 'There's only one reason the government wouldn't make these changes today and that's because they want and need the revenue they are taking from first-home buyers for these stamp duty payments,' Mr Caine said. With research regularly showing stamp duty was an inefficient tax, he said it should not be allowed to continue stopping first-home buyers from purchasing the right home for them near where they work and where their family lives. He added that with the changes enough to add 185 suburbs to the list covered for stamp duty waivers, it would also likely slow any home price growth caused by the tax tweak. Mortgage Choice loan broker David Thurmond said the state's program needed to be reviewed, as it hadn't been updated since 2017 and there would 'definitely' be thousands buying homes outside of the current caps. 'And what has happened since? A tremendous increase to values,' Mr Thurmond said. 'It is forcing people to make compromises on the suburbs they are living in and it's meaning they have to buy a second home later on, as they grow out of their first. 'There are definitely people who could go to $800,000 if the stamp duty was removed.' The broker said while it was likely home values would rise in response to first-home buyers effectively getting a boost to their budgets, the addition of so many more suburbs to the potential buying pool would likely diffuse the impact — and the support was needed right now. By contrast, he said that none of his clients would benefit from the Allan government's stamp duty concessions for off-the-plan purchases for up to $1m. To generate more housing, Mr Thurmond said additional targeted grants at new homes would also be necessary. SUBURBS WITH HOUSES UP TO $1M Melton - $475,000 Melton South - $522,000 Kurunjang - $538,000 Melton West - $540,000 Brookfield - $550,000 Dallas - $560,000 Coolaroo - $560,000 Weir Views - $570,000 Harkness - $572,000 Wyndham Vale - $575,000 Thornhill Park - $580,500 Broadmeadows - $585,000 Laverton - $590,000 East Warburton - $590,000 Longwarry - $595,000 Millgrove - $597,500 Bacchus Marsh - $599,500 Doveton - $600,000 Meadow Heights - $600,000 Frankston North - $605,000 Werribee - $606,000 Jacana - $608,500 Maddingley - $610,000 Albanvale - $612,000 Kings Park - $618,000 Wallan - $620,000 Hoppers Crossing - $620,000 Campbellfield - $621,000 Cobblebank - $625,000 Strathtulloh - $625,000 Rockbank - $625,000 Mambourin - $626,500 Diggers Rest - $635,000 Eumemmerring - $635,000 Kalkallo - $640,000 Manor Lakes - $640,000 Badger Creek - $640,000 Deanside - $642,000 Mount Cottrell - $642,000 Darley - $649,500 Donnybrook - $650,000 Tarneit - $650,000 Craigieburn - $650,000 Pakenham - $652,000 Delahey - $652,500 Werribee South - $652,500 Roxburgh Park - $653,000 Truganina - $655,000 Beveridge - $656,500 Cranbourne - $658,500 Westmeadows - $660,000 Warburton - $660,000 St Albans - $662,500 Epping - $663,000 Hampton Park - $665,000 Junction Village - $665,000 Deer Park - $669,000 Mickleham - $669,900 Koo Wee Rup - $670,000 Hastings - $670,000 Sunbury - $675,000 Ardeer - $676,300 Wollert - $680,000 Bonnie Brook - $680,000 Cranbourne West - $683,000 Sunshine West - $685,000 Woori Yallock - $694,000 Clyde - $695,000 Fraser Rise - $697,500 Mernda - $700,000 Kealba - $700,000 Lalor - $701,000 Sydenham - $701,000 Capel Sound - $705,000 Yarra Junction - $707,500 Cranbourne East - $710,000 Lang Lang - $710,000 Carrum Downs - $711,000 Whittlesea - $715,000 Altona Meadows - $716,000 Cranbourne North - $717,000 Lancefield - $717,500 Officer - $720,000 Thomastown - $720,000 Blind Bight - $722,500 Aintree - $723,750 Clyde North - $725,000 Dandenong - $725,000 Crib Point - $727,500 Hallam - $728,000 Seville East - $729,500 South Morang - $730,000 Baxter - $730,000 Bunyip - $732,500 Gladstone Park - $733,000 Burnside Heights - $735,000 Frankston - $735,000 Sunshine North - $736,000 Braybrook - $740,000 Albion - $740,000 Launching Place - $742,500 Caroline Springs - $743,500 Garfield - $745,000 Tullamarine - $745,000 Narre Warren - $748,750 Point Cook - $750,000 Eynesbury - $750,000 Nar Nar Goon North - $750,000 Seabrook - $752,500 Doreen - $760,000 Dandenong North - $760,000 Rosebud - $760,000 Keilor Downs - $765,000 Fawkner - $766,500 Noble Park - $770,000 Noble Park North - $777,500 Brooklyn - $780,000 Sunshine - $782,500 Lynbrook - $783,000 Skye - $787,000 Burnside - $788,000 Williams Landing - $792,000 Kilsyth - $795,000 Kingsbury - $797,500 Mill Park - $798,000 Heidelberg West - $800,000 Romsey - $800,000 New Gisborne - $800,000 Keilor Park - $800,000 Hillside - $801,000 Endeavour Hills - $805,000 Mooroolbark - $812,000 Glenroy - $815,000 Narre Warren South - $815,000 Attwood - $815,000 Officer South - $820,000 Lilydale - $820,000 Seaford - $820,000 Healesville - $820,000 Maidstone - $821,000 Cranbourne South - $821,500 Coldstream - $822,500 Selby - $824,750 Silvan - $825,000 Belgrave - $827,500 Springvale - $830,000 Kalorama - $835,000 Mount Evelyn - $838,000 Springvale South - $838,000 Monbulk - $838,000 Tyabb - $840,000 Hadfield - $850,000 Seville - $850,000 Bundoora - $850,000 Chirnside Park - $850,000 Boronia - $850,000 Tootgarook - $850,500 Langwarrin - $855,000 Heathcote Junction - $855,000 Greenvale - $857,500 Tecoma - $860,000 Somerville - $863,750 Taylors Hill - $865,000 Mount Dandenong - $865,000 Upper Ferntree Gully - $866,500 Cairnlea - $870,000 Cockatoo - $870,000 Ferntree Gully - $870,000 The Basin - $873,000 Upwey - $875,000 Kallista - $875,500 Heidelberg Heights - $875,750 Wesburn - $876,250 Bayswater - $879,000 Berwick - $880,000 Cannons Creek - $887,500 Croydon - $888,000 Carrum - $888,500 Reservoir - $890,000 Botanic Ridge - $895,000 Bayswater North - $897,500 Croydon South - $897,500 Avonsleigh - $900,000 Gowanbrae - $905,000 Watsonia North - $905,000 Williamstown North - $905,000 Keysborough - $910,000 West Footscray - $915,000 Airport West - $917,500 Montrose - $920,000 Altona North - $925,000 Wandong - $925,000 Knoxfield - $930,444 Lyndhurst - $931,500 Wattle Glen - $935,000 Sassafras - $935,000 Yarra Glen - $937,500 Clayton South - $938,500 Kinglake West - $938,500 Chelsea Heights - $940,000 Watsonia - $940,500 Kinglake - $945,000 Taylors Lakes - $945,000 Pearcedale - $947,500 Dromana - $949,000 Footscray - $950,000 Chelsea - $950,000 Riddells Creek - $950,000 Rye - $950,000 Wandin North - $955,000 Scoresby - $961,000 Coburg North - $969,250 Keilor Lodge - $970,000 Emerald - $973,000 Gisborne - $980,000 Avondale Heights - $980,000 Croydon North - $987,000 Hurstbridge - $990,000 Ringwood East - $991,000 Beaconsfield - $1,000,000 Gembrook - $1,000,000 Nyora - $1,000,000
ABC News
27-05-2025
- Business
- ABC News
Victorian opposition to scrap stamp duty for first homebuyers if elected next year
The Victorian opposition says it will scrap stamp duty for first homebuyers if it forms government next year — a move one expert says could push up house prices while helping more Victorians into homes. The proposal to wipe stamp duty for all first home purchases of up to $1 million would benefit an expected 17,000 home buyers a year. But the Victorian Liberals declined to detail how they would pay for the proposal, which it said would cost $1.09 billion over the next four-year term of government. Asked how the debt-saddled state could afford the hit, Shadow Treasurer James Newbury flagged a "different set of priorities" if his team was elected in 2026, including getting more people into homes. "We will make every announcement fully costed and released before the election," he said. "There is obviously a difficulty with breaking down a cost prior to doing that, because if we were to give you the costing on one policy, it would foreshadow the other commitments we are going to make." The proposal was the centrepiece of a budget reply speech, delivered on Tuesday, that took aim at the state's tax burden under the Allan Labor government. Treasurer Jaclyn Symes revealed in her first budget last week that the state's debt is set to hit record levels, with net debt expected to reach $167.6 billion this year, before growing to $194 billion in three years' time. However, the budget also includes a $600 million surplus, in part due to the controversial Emergency Services and Volunteers Fund, which will tip $1.6 billion into government coffers in the coming financial year. "We know that one of the cohorts that's missed out a lot is that next generation who want to come through into home ownership," Opposition Leader Brad Battin said on Tuesday. "This is a policy that will be a game-changer. The opposition leader said developers and industry figures he spoke with backed the move, saying it would boost supply and confidence in the sector. But Michael Fotheringham, from research body the Australian Housing and Urban Research Institute, warned there was a risk it could inflate house prices by increasing the amount home buyers could borrow and spend. "There's a risk that that's inflationary, but as a policy overall, this approach has been quite successful," he said. He said the policy merely lifted the threshold of an existing scheme, which allows for a full stamp duty exemption on properties of up to $600,000 and a concession for properties up to $750,000. "The people that will benefit from [the new policy] are first home buyers that are looking for a more premium home rather than a more modest home, so looking to be a bit more upscale in the market," he said. The construction sector says interest rates, reduced borrowing capacity and construction costs have hampered the feasibility of some residential developments. Dr Fotheringham said a successful policy would strike a balance between making development more feasible without inflating prices. The Labor government recently extended a stamp duty concession for apartments, units and townhouses bought off-the-plan. The policy has been criticised by some who argue it does more to help existing home owners downsize rather than it does to help young people into the market.
