Stamp Duty tier
The headline grabbing announcement is a reform to stamp duty. The tax on house purchase will move from a ‘slab’ style system to a ‘tiered’ one. At the moment a house that costs £250,000 would incur a stamp duty charge of £2,500. But a house of £250,001 would incur a charge of £7,500. The reform aims to move away from this step-change system. Going forward no stamp duty will be paid on the first £125k; 2% up to £250k; 5% up to £925k; 10% up to £1.5mln and 12% above £1.5mln. Each tax rate will apply only to the particular slice of the selling price to which it applies, not the whole value of the property as per the current system. It’s estimated to benefit 98% of people who pay it.