The government has unveiled new ways that stamp duty (SDLT) will be charged for residential property and they have already put these measures into force.

Stamp Duty will now be a progressive tax, more in line with income tax, than the ‘slab structure’ that had been used up until now.

There will be no tax paid on the first £125,000 of a properties value, 2% on the amount above that up to £250,000 then 5% on the next amount up to £925,000 and then 10% on amounts above that up to £1.5m and then 12% on everything above that.

Liam Bailey, Global Head of Research at Knight Frank, said: “Removing the slab structure of the current form of stamp duty will remove distortions in the market. There will be less bunching of values below the different thresholds. However, the new higher rates of stamp duty at the top of the market could act to reduce transaction volumes here and actually lower overall tax take more than currently forecast. Over the last year alone transactions of £1m+ homes have accounted for nearly 30% of all Stamp Duty revenue.”

The government expects to take a ‘hit’ on its stamp duty receipts as a result of the new measures as in 2013 it collected £6.4bn in stamp duty on house sales. Stamp duty receipts should rise, with estimated figures predicting that the measures will cost the government between £760m and £840m in 2016-17.

Liz Peace, British Property Federation Chief Executive, said: “This Autumn Statement lays the ground for the property industry to further increase the vital role it plays in driving economic growth, supporting businesses and delivering homes. We are therefore delighted that the Chancellor has listened to the property industry and, within the budgetary constraints he has set himself, has supported our calls to help unlock greater investment in our towns and cities.”

In order to work out how much Stamp Duty Land Tax you have to pay under the new measures, use the HMRC Land Tax Calculator.