From midnight 98% of homebuyers will benefit from cuts in Stamp Duty, according to Chancellor George Osborne, who announced the changes in his Autumn Statement today.

Under new rules announcement today, the first £125,000 of a home will be tax-free and the portion above that figure, up to £250,000, will be subject to a 2% tax.

Homes that cost below £925,000 will be subject to a 5% tax on the portion of the price above £250,000, while a 10% tax will be payable on the portion of a home’s value between £935,000 and £1.5m. Any portion of a property’s price above £1.5m will be taxed at 12%, according to Osborne. The changes have been made to ensure there are not huge jumps in tax payable on properties once they pass a certain threshold.

The new rule means a family home worth £275,000 would be subject to £4,500 lower tax than before, while a £2.1m property would cost £18,750 more in stamp duty.

According to Osborne, the new tax system will cost the Treasury £800m every year in order to benefit home buyers, and anybody currently buying a house can choose between the current system and the new stamp duty rates.

Related posts:

Merseyside supplier-switching scheme reopens Liverpool houses prices see annual upturn Plus Dane to build hundreds of new homes across Merseyside New homes planned for derelict Liverpool timber yard Property investor submits plans for more than 500 new apartments on Pall Mall YM Liverpool magazine announces return of annual awards ceremony