Not really a silly Q?

[trt]

But why do we have to pay Stamp Duty on buying a house, whats it for and where does the money go to?

My daughter and husband have just finalized the buying of there house, and have to pay 3,000 which they have already paid tax in their salary's for.

Would appreciate educated answers only.

[ummmm]

Would appreciate educated answers only.

You do know you've posted this in ChatterBank?

[boxtops]

Income tax on their salaries is nothing to do with stamp duty, it's a different form of tax.

[Jemisa]

You only have to pay stamp duty on houses over £175.000 I think it is.
The Labour Gov. was thinking of abolishing it but....
I don't know exactly what its for tho.

Must have been a big house they bought.

jem

[jackthehat]

Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp (a revenue stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp.

[starone]

I am hoping to move in the near future and must admit I hate the thought of paying stamp duty. It is on houses over £125,000 isn't it and I suppose that is to help first time buyers who would presumably be buying in the lower price range. As suggested by trigger it seems to be a wealth tax.

[trt]

Jemisa,
its not about how big the house is or how much its worth.
They have both worked their butts of the past few yeas to have a nice house, why should they be penalized when so many people on benefits can get houses free?

[jackthehat]

Because they, hopefully, will be able to sell their house at a nice profit..........the people in 'free houses' (!) won't because they don't own them.

[bushbaby_de]

Jemisa - where do you live that £175 grand gets you a big house? You can only get flats for that price round here!

[jon1968]

Depending how much you’re spending if you’ve got the cash you can sometimes keep it under the next threshold? I know the house 2 doors down from my Mum & Dads went for £249,999 + £25K in a brown envelope! ;-)

Because the thieving taxman takes their % on the WHOLE amount rather than differing rates between thresholds they saved nearly £6K.