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Stamp duty change surprise leads 2014 Autumn Statement

Chancellor George Osborne has announced the coalition government’s latest policies and forecasts in the 2014 Autumn Statement, with reform of stamp duty providing the biggest surprise.

Stamp Duty Reforms

Chancellor George Osborne has announced the coalition government’s latest policies and forecasts in the 2014 Autumn Statement, with reform of stamp duty providing the biggest surprise.

The Chancellor announced plans for a new stamp duty system, with changes coming into effect from midnight tonight. The slab system has been replaced with a more progressive duty, with Mr Osborne claiming that stamp duty will be cut for 98% of homeowners who pay it.


In the new system, properties up to the value of £125,000 will be free from taxation, properties up to £250,000 will have a duty of 2%, up to £925,000 will be set at 5%, up to £1.5m will see taxation of 10% and any properties valued above this will have to pay 12% on any value of the property above the band.


Mr Osborne’s other main message was that the UK is on the road to recovery as the UK continues to grow faster than any other major economy in the world. Over the course of Parliament, the UK economy has risen by 8%, faster than previously suggested, while business investment within the UK has risen by 27% over the same period.


The GDP forecasts have also been updated, with the Chancellor suggesting growth for 2014 now expected to reach 3%, a marked increase from the 2.4% predicted in the last Autumn Statement and the 2.7% increase estimated in the Budget earlier this year.


The economic growth forecasts for the next five years have been revised in light of these new figures, with the Chancellor announcing that 2015 is set to bring growth of 2.4%, followed by a increases of 2.2% in 2016, 2.4% in 2017, 2.3% in 2018 and also in 2019.


The tax-free personal allowance has also been increased to £10,600, whilst the higher 40p taxation rate will now be applied at the banding of £42,385.

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