Chancellor George Osborne is set to announce reforms to the structure of stamp duty in today’s Autumn Statement as the Conservatives focus their pre-election strategy on homeowners, the Financial Times reports.
Ministers are said to be considering abolishing the current “slab” structure, in which the higher tax rate is payable on the whole amount once the threshold is crossed, in favour of a progressive system.
Industry experts have long been calling for such a move, which would help buyers at the lower end of the property market while charging much heavier levies on those purchasing more expensive homes.
Scotland will ditch the slab structure from April next year in favour of a more progressive system where tax is only charged above thresholds, rather than on the whole amount.
Below £135,000 there will be no tax, between £135,001 and £250,000 buyers will pay 2 per cent and between £250,001 and £1m the rate will be 10 per cent. For properties worth over £1m the rate will be 12 per cent.
Details of the reforms being considered south of the border by the Treasury remain unclear. The Treasury declined to comment.
Read about the full Autumn Statement stamp duty changes here.