George Osborne's change to stamp duty was the surprise announcement in yesterday's autumn statement, in the biggest shake up in this housing tax for decades.
Change To Stamp Duty Big Surprise In Autumn Statement
Average and lower end house buyers will see their stamp duty cut - which came in effect from midnight - while houses over £1 million would see a rise in their stamp duty. This was clearly a policy that was designed to go up against Labour's planned mansion tax should they take over power at the general election yesterday.
This will mean that 98% of property sales will now be cheaper for buyers under the new stamp duty plans and is designed to help more first time buyers get on the housing ladder.
It was a mixed bag from Osborne in his final autumn statement before the general election next May, a growing economy means that Osborne was able to announce the changes in stamp duty, a rise in your tax-free personal allowance and the threshold for paying higher rate income take will also increase.
While the economy is set to grow by 3% by the end of the year, there was some bad news for the chancellor when it comes to government spending as they have borrowed more money over the last twelve months than planned and compared to the previous year.
The 2014 economy growth was only expected to be 2.7% so has exceeded expectations at 3%. Osborne has forecast that the economy will grow a further 2.4% in 2015 and 2.2% in 2016.
However, there was good news for taxpayers as Osborne announced that those who are earning less than £10,600 would play no income tax, while the threshold of the 40% rate will rise to £42, 385.
Those we are saving for their future were also rewarded in the autumn statement as Osborne revealed that the increased annual limit on ISAs will be increased to £15,240 - this come just month after it was raised to £15,000.
Osborne has further good news for ISA users, after he announced that ISA holders will be able to pass on their ISA to a spouse tax-free - this is currently not the case. The tax-free inherited ISA will start from today.
There was also better news for businesses as they will no long have to pay National Insurance contributions for taking on apprentices. Employers who have taken on apprentices who are under the age of twenty will be rewarded for getting young people into the work place and will encourage businesses to offer more apprenticeship places.
This was an autumn statement that was designed to be upbeat and positive as we head into election year, with money being poured into the NHS and into improving road networks.
The battle for the 2015 general election has started and Osborne and the Conservatives have outlined plans that could help them win a second consecutive term in Downing Street.