The Chancellor, George Osborne, announced today in his Autumn Statement that Stamp Duty will be cut for millions of ordinary house buyers but significantly hiked for those at the top end.
Houses worth less than £125,000 will be exempt from stamp duty when sold, with rates climbing from 2pc for homes worth between £125,001 and £250,000, 5pc between £250,001 and £925,000, 10pc between £925,001 and £1.5m and 12pc above that.
The current system, where the amount owed jumps at each threshold level, will be replaced by a graduated rate, working in a similar way to income tax, from midnight.
For a £1 million property it will rise by £3,750, from £40,000 to £43,750.
At £2 million it will shoot up £53,750, from £100,000 to £153,750.
And for a £5 million home it will soar by an eye-watering £163,750, from £350,000 to £513,750.