The Labour Party launched their 2010 Election manifesto on 12th April 2010 which included little that was specific and new about housing and property. One headline announcement, however, was a slight rewording of the 2010 Budget announcement on Stamp Duty.
When is a Stamp Duty Holiday just a Flipping Tax-break?
There will now be a “two-year Stamp Duty holiday for first-time buyers on residential property transactions up to £250, 000”. This sounds like it gives the opportunity for someone to buy their first and subsequent properties for 2 years and surely encourages flipping (quickly re-selling at a profit) at the low-to-middle end of the market. Even if the total allowance is used up on successive deals (i.e. one at £100k, then one at £150k within 24 months of each other uses up the holiday) it certainly provides a non-trivial incentive to trade up quickly.
Maybe this is designed to appeal to those looking to get into Buy-to-Let? And those in part-ownership deals who find they can trade onwards quickly?
However it works, it’s certain to be called a “Flippers Charter” by some! And no doubt the red-tops will have plenty of fun with more flipping puns!