Changes mentioned in the 2014 Autumn Statement regarding stamp duty, the tax you pay when buying a house, are now in place. Instead of paying a single rate of tax on the entire price of the property, it is now subject to a new tiered system in which higher rates of duty are charged in incremental steps as the value of the property increases.
The following stamp duty rate and bands now apply:
The first £125,000 of a property’s cost – nil
Between £125,001 and £250,000 – 2%
Between £250,001 and £925,000 – 5%
Between £925,001 and £1.5m – 10%
Anything above £1.5m – 12%.
What this now means is that virtually every house buyer will pay a lower rate of stamp duty than before, and only those buying properties valued at more than £937,000 will pay more.