Chancellor George Osborne scraps 'damaging' stamp duty

The chancellor has announced a stamp duty cut for house buyers following a historical overhaul of the 'damaging' tax.

16:59 04 December 2014

Chancellor George Osborne has announced a stamp duty cut that will see 98per cent house buyers paying thousands of pounds less. However, the tax will increase for those who purchase properties worth more than £1 million.

The difference will be paid for by new levies on businesses that avoid paying taxes in the UK.

“There has been a debate in this country about taxing houses,” Mr Osborne said. “The system I introduce today replaces a badly designed system that has distorted our housing market for decades.”

“It reduces the stamp taxes for 98 per cent of people who pay them in this country. It increases the taxes on the most expensive 2 per cent of homes, but only asks people to pay that tax when they buy the house and they have the money.”

In a clear attack against Ed Miliband’s mansion tax policy, Osborne added: “It is in stark contrast to those who would hit people’s pensions and jobs and homes with higher taxes. That is an approach we entirely reject.”

“Now Britain faces a choice,” Mr Osborne said. “Do we squander the economic security we have gained, go back to the disastrous decisions on spending and borrowing and welfare that got us into this mess?

“Or do we finish the job – and go on building the secure economy that works for everyone?