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 each threshold level, would be replaced by a graduated rate, working in a similar way to income tax.
The new stamp duty rates will only apply to the part of the property price that falls within that band. People currently in the process of purchasing a home could choose which regime to operate under, Mr Osborne said. Under the new regime, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12 % on everything over that.
Online calculator: http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm