AS14: Osborne bins 'single slab' stamp duty; unveils marginal tiers

Laura Miller
clock

The government is to do away with the existing 'single slab' approach to stamp duty on residential property purchases, introducing a new tiered charge from 4 December.

Buyers currently pay 1% tax on a £250,000 home, but 3% on one costing £250,001, which represents an unfair system, George Osborne announced during the Autumn Statement on 3 December. Instead, from 4 December, there will be a tiered approach. There will be: No tax on first £125,000 of purchase price; Then 2% on amount up to £250,000; Then 5% up to £925,000; Then 10% up to £1.5m; Then 12% on everything else. The Chancellor said: "As a result stamp duty will be cut for the 98% of homebuyers who pay it." Shadow Chancellor Ed Balls welcomed the move, but questioned why the...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Treasury collects £2bn in 12 weeks as IHT receipts continue to soar

Figure breaks down at £22m a day for the government’s coffers

Hope William-Smith
clock 21 July 2023 • 2 min read
Frozen tax thresholds bite as 55% more pay additional rate 

Frozen tax thresholds bite as 55% more pay additional rate 

Hundreds of thousands dragged into higher paying tax brackets 

Jenna Brown
clock 29 June 2023 • 3 min read
Advisers and clients say financial decision-making getting harder

Advisers and clients say financial decision-making getting harder

Past five years has seen more and more political and economic uncertainty

Jenna Brown
clock 06 June 2023 • 2 min read