ONE of the surprises from the Autumn Statement was the long-awaited change to Stamp Duty, which brought welcome news to the many thousands of people who plan to buy property.

The Stamp Duty changes can only be seen as a positive move for the majority of purchasers and now offers a fairer system which is structured in a similar way to income tax.

It means that housebuyers can allocate more money to deposits, rather than tax, which will hopefully help more people get on and move up the property ladder.

Under the old rules, Stamp Duty was paid at a single rate on the entire property price. With effect from 4th December, Stamp Duty will increase progressively and tax will be payable on the part of the property price which falls within each band.

The new rates and bands are: £0-£125,000 – 0%.

£125,001-£250,000 – 2%.

£250,001-£925,000 – 5%.

£925,001-£1,500,000 10%.

£1,500,001 and over – 12%.

So from 4th December, the Stamp Duty payable on a property which sells for £275,000 will be £3750, an effective rate of 1.4 per cent and a saving of £4500 compared to the previous regime.

Under the new rules the Stamp Duty payable will be lower than or equal to that payable under the old regime for property prices up to £937,500.

The new rules will apply in Scotland until 1st April 2015, when they will be replaced with the Land and Buildings Transaction Tax.

The change to duty may create a small boost to the housing market in the coming months but the reaction we are more likely to see is more accurate house valuations in the future, rather than pricing a property above the expected sale price.

For too long, those with properties priced on the cusp of the old band system have been unsure whether to market their property above or below the thresholds.

If you are considering buying or moving to a more expensive property in the coming months, read my tips in my next article on how to best prepare for making a mortgage application.

You can also speak to a wealth planner or experienced mortgage adviser for more advice on how to get on or move up the property ladder.

I just wanted to finish off this article by saying thanks for reading my column during 2014. I’ve really enjoyed writing them for you and hopefully you’ve found some of it not only interesting but useful too.

Thanks also to those many people who have got in touch with your enquiries and hopefully you too have found it all to be very useful information.

All that remains for me is to wish you all a very Happy Christmas and of course a prosperous New Year ! See you all in 2015.

You can get in touch with Billy by calling his freephone number: 0800 321 3508. Or you can reach him via the website, www.williamgeorge.info, where there is a contact page, or email him directly: w.george@ifswm.com.