Reforming stamp duty to help people get on and move up the housing ladder
Originally published by UK Liberal Democrats
The Autumn Statement has confirmed reforms of the stamp duty land tax to help first time buyers get on the property ladder, as campaigned for by Liberal Democrats in government.
It has been long standing Liberal Democrat party policy to help first time buyers and make it easier for people to move house when they want to.
The new system of stamp duty land tax will be fairer than the current system, meaning that the stamp duty paid on the average house price will be £4,500 lower.
The reforms mean that those purchasing properties below £935,000 will pay less stamp duty and those who purchase the highest value homes will pay more.
The new system will provide help to first time buyers who will have the same or less stamp duty to pay and therefore a lower up front cost.
The changes will also help aspirational homeowners who want to move up the property ladder.
It means that from 4 December, the stamp duty paid on the average house price will be £4,500 lower while those buying a home for £5m will pay £163,750 more.
The new rates will apply to homes purchased in Scotland before 1 April 2015. From this date the Land and Buildings Transaction Tax replaces stamp duty land tax in Scotland.