The switch from the old ‘slab’ system of Stamp Duty to a tiered system means 98% of home buyers will pay less on property purchases with effect from 3rd December.
Under the old system, someone buying at £260,000 paid the 3% rate on the full amount, but now they pay 2% on the band between £125,000 and £250,000 and 5% on the amount above £250,000. The losers are buyers of property worth over £937,500, and the top rate of stamp duty rises to 12% on purchases over £1.5 million.