In response to the Chancellor's Autumn Statement announcement, Kersten Muller, partner in real estate tax at business and financial adviser Grant Thornton UK LLP, comments on the implications of the changes to Stamp Duty Land Tax (SDLT):
"Some surprise announcements for the property industry in today’s Autumn Statement 2014. Undoubtedly some of the biggest news is the abolition of the slab system of SDLT for residential property. From midnight tonight buyers of residential property will pay SDLT on the part of the property that falls within each tax band, so very much like income tax.
"This will significantly reduce SDLT on purchases of the average family home – £4,500 on a family home costing £275,000. Even the average London home costing £510,000 should benefit from an SDLT saving of £4,900.
"Of course, purchasers of houses at the higher end will pay more: buy a house worth £2m and you now have to pay SDLT of £153,750, compared to £100,000 before. The higher rates are therefore likely to impact London more than other areas of the UK."