Good News for Borrowers Following Autumn Statement

4 December 2014

George Osborne Budget 2014

During the Chancellor’s Autumn Statement, held on 3rd December, 2014, George Osborne, Chancellor of the Exchequer, announced a radical reform to Stamp Duty Land tax imposed on house purchase values - a move the government claims will mean a cut for 98% of people who pay it.

"I am announcing a complete reform of a tax that has been described as one of our worst-designed and most damaging of all taxes. Stamp duty is charged at a single slab rate on the whole purchase price of a home. It means big jumps in tax when house values tip into a new band. The distortions can be particularly damaging at the lower end," Osborne said in his Statement.

Under the reform, the following changes are now in effect:

  • No stamp duty paid on house prices up to £125,000
  • 2% duty on the part of a property price between £125,001 and £250,000
  • 5% duty on the part of any house price between £250,001 and £925,000
  • 10% duty on the part of a house price between £925,001 and £1.5 million
  • 12% duty on the part of all property prices above the £1.5 million threshold
Commenting on the implications for purchasers, Colin Strong, Head of Lending Procurement said: "The entire industry was taken aback with the surprise reforms to the very unfair Stamp Duty system. The new progressive system of taxation for home purchase is much fairer for purchasers, and an essential move for a healthier housing market."

He continued: "The reforms will help many of our customers who are currently going through the house purchase process and those who are considering a new purchase.”

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