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How much extra you will pay for a house in Stamp Duty change from Thursday

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House buyers will face increased stamp duty taxes starting from tomorrow after announced the tax hike in Labour's Autumn Budget today.

But an increase in rates will only affect second-home buyers, landlords buying-to-let properties or commercial business properties, the Chancellor has confirmed.

From Thursday, second home buyers face a stamp duty rise of two percentage points, up from 3 percent to 5 percent.

Stamp duty is taxed in value based bands. For a first home worth up to £125,000 the buyer will pay no tax and this has been slashed from £250,000 - which means more people will end up paying more Stamp Duty.

If the property is valued at £125,000 to £925,000, the buyer will pay no tax on the first £125,000, and now, five per cent tax on any remaining value.

This means that someone buying a house worth £700,000 would pay a £28,750 tax bill, or five percent of £575,000.

That means second home buyers will face a £12,500 stamp duty bill for a £250,000 property, a £5,000 increase from £7,500 before.

For a £125,000 property, the charge will go be £6,250, a £2,500 increase.

First time buyers won't pay any stamp duty on a house priced lower than £425,000 although this is reducing back down to £300,000 from April in a change which had already been announced by the previous government.

On second homes, the bands are now five percent tax for over £125,000, eight percent for the next amount to £925,000, then 13 percent for £925,001 to £1,500,00 and 15 percent for any value above £1.5m.

"This will support over 130,000 additional transactions from people buying their first home, or moving home, over the next five years," Chancellor Rachel Reeves pledged during her Budget.

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