Stamp duty on home purchases is to be reformed from midnight on Wednesday, along the lines of the system due to be introduced in Scotland, the chancellor has announced.
George Osborne said 98% of homeowners in England and Wales would pay less after the changes than they do under the current system.
Only people who buy homes worth more than £937,000 will pay more in tax.
George Osborne has said stamp duty will be cut for 98% of homebuyers in his Autumn Statement to the Commons.
The chancellor said that from midnight the current system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate, working in a similar way to income tax.
Stamp duty revenues are approaching the record high recorded in 2007, according to figures released on Thursday from Nationwide, Britain's biggest building society.
Its house price index recorded a sharp increase in stamp duty revenues, totalling £10.2bn in the year to June.
Chancellor George Osborne has set out seven issues of relevance to the housing industry in his Budget delivered this afternoon.
Key points of Budget 2014: At-a-glance
Here are the key points of Chancellor George Osborne's Budget.
Today the Chancellor George Osborne announced measures to cut down on stamp duty avoidance by charging companies purchasing properties worth over £500,000 with a levy of 15% of the purchase price.
The Chancellor should look again at the nation’s Stamp Duty thresholds, an archaic tax structure which is distorting the housing market, says RICS as part of its 2014 Pre-Budget statement.
The existing ‘slab’ Stamp Duty system taxes a percentage of a home’s purchase price according to which value bracket it happens to fall into. For instance, a buyer purchasing a property for under £250,000 would pay 1% of the price in tax, while a home sold for just one pound more would generate a tax bill of 3%...
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