In a dramatic overhaul of stamp duty outlined in the Autumn statement, the Chancellor, George Osborne announced changes that could benefit 98 per cent of people when buying a new house.

The new reforms have been welcomed by many for cutting the cost of buying a home for the majority. The changes come into effect from today (4th December).

Osborne saved the surprise announcement until the end of the Autumn Statement. The surprise is that this will take effect immediately. He has scrapped the current system of stamp duty, instead opting for a five tiered banding which he hopes will ease the financial pressure of buying a home for the majority of people.

The new system will mean that, in the same way as income tax, rates apply only to the part of the property price that falls within each band when it is bought.

The new bands are as follows:
No tax on first £125k
2% on portion up to £250k
5% up to £925k
10% up to 1.5m
12% on everything over that

The Government believes the changes will benefit 98 per cent of homebuyers.

Please note, if you have exchanged contracts on your purchase already, but not completed, you will have the choice of paying the old or new rate.