• You are here:
• Home
• »
• News
• »
• Osborne Announces Stamp Duty Reforms in Autumn Statement

The chancellor George Osborne yesterday announced major reforms to stamp duty as part of the government’s Autumn statement.

Information released by Housebuilder magazine explained the changes.

"From midnight (3 Dec), stamp duty will be introduced at a graduated rate, replacing the current 'slab system.' The changes will mean that stamp duty will be cut for 98% of home buyers who pay it, the chancellor said.

The changes are as follows:

• No stamp duty on the first £125,000 paid
• 2% on the portion between £125,001 and £250,000
• 5% on the portion between £250,001 and £925,000
• 10% on the portion between £925,001 and £1.5 million
• 12% on everything above £1.5 million

HBF’s executive chairman Stewart Baseley commented:
"HBF has long called for the abolition of the stamp duty slab system that caused distortions in the market, penalised buyers and influenced what builders could build. The slab system also did wider economic damage because it impeded labour mobility.

Whilst we need to study the overall impact of the proposed changes the new system, which will benefit 98% of home buyers, is fairer and more practical and will help stimulate activity in the housing market, as well as helping to boost the production of new homes."

The Autumn statement also included previously announced housing and planning measures.

Source: Housebuilder