Autumn Statement: How much west London areas would pay under new Stamp Duty rules

Average buyers in Westminster and Kensington and Chelsea are set to be worse off under the Chancellor's new stamp duty plans.

The average house price in Kensington and Chelsea, according to the Land Registry, was £1.28m. Today buying a property at that price would land you with a bill for 5% of the whole purchase price, or £64,009.

The new rules would mean you would pay tax on only the bit over £125,000, with 2% on the price between £125,001 and £250,000, 5% on the part between £250,000 and £925,000 and 10% on the bit over £925,000, or a bill of around £71,767, making purchasers £7,758 worse off.

Purchasers buying the average property in Westminster at £988,362, will be £3,052 worse off under the new rules.

The rest of West London is set to benefit from the changes, with savings of up to £3,620 in Hillingdon.

Osborne's rabbit out the hat in today's Autumn Statement was a complete overhaul of the Stamp Duty system. Under current rules, if you buy a house over £125,000, you pay the equivalent of 1% of the price in tax on the purchase, with thresholds relating to the total price of 3% for purchase over £250,000, 4% for over £500,000 and 5% for sales over £1m.

The new rules mean you only pay the tax on the part of the purchase price over each threshold. So the first £125,000 of the purchase price still attracts no tax but you will pay 2% on of the price between £125,001 and £250,000, 5% on anything between £500,001 and £925,000, 10% on anything between £925,001 and £1.5m and 12% on the anything they spend over £1.5m.

The aim is that anyone buying a house worth £936,000 or less will pay less tax, but anyone buying anything worth £938,000 or more will be worse off.

The new rules are set to come in at midnight tonight, although any buyers who are between exchange and completion at the moment will have the option of deciding which regime they want to pay tax under.

Stamp Duty costs in your area:

In Brent the average house price is £416,166. Buyers currently pay an average of £12,484.98 in Stamp Duty and will pay £10,808.25 on average under these new plans.

City of Westminster : the average house price = £988,362, current Stamp Duty is £39,534.48 and will rise to around £42,586.15.

Ealing : the average home is worth £446,180, which means Stamp Duty of £13,385, and in future will be slightly cheaper at £12,308.95.

Hammersmith and Fulham : average price is £796,317, meaning duty to pay in the region of £31,852.68, and in future the bill could be £29,815.80.

Harrow : the average home is worth £363,851 and Stamp Duty is £10,915.53. In future it could be £8,192.50.

Hillingdon : the average home is £319,049, meaning Stamp Duty of £9,571.47 and in future it could quite a bit better on £5,952.40.

Hounslow : homes are on average selling for £361,543, meaning £10,846.29 of Stamp Duty which would reduce to £8,077.10 in future.

Kensington and Chelsea : average homes sell for £1,280,170, with Stamp Duty payable of around £64,008.50. This will increase to £71,766.95 under the Chancellor's plans.

The view of business:

Kevin Hollinrake, managing director of Hunters the UK's larges estate agents, said: "For too long, stamp duty has distorted the market deterring sellers from marketing their homes and buyers from buying them in the dead zones above the key thresholds such as £250,000 and £500,000. This should mean more property coming onto the market, and therefore, more sales which is good for the housing market and the economy as a whole."

Franck Sidon who runs TaxAssist Accountants Chiswick said the Chancellor’s Autumn Statement would benefit independent shop owners, businesses operating from small office premises, local garages, pubs, restaurants, cafés and many more. He added: "Although we'll have to wait until the 2016 Budget for the much needed full review of the business rates system, these measures go some way to help to level the playing field between businesses which operate from shops and offices and their online competitors. Increasing the £1,000 discount on rates for pubs, restaurants and small shops with a rateable value of £50,000 or below, to £1,500 next year is also good news and will help to encourage new businesses back to the high street."

Jeremy Blackburn, Head of Policy at RICS said: "Finally we see long overdue reform to the stamp duty tax system – described by the Chancellor as the most damaging tax of all. Time and time again RICS has called for these changes to stamp duty structure, which now mean 98% of house buyers will benefit. These changes reduce distortion and ensure those at the top end of the market contribute fairly, while those at the bottom will be given a fairer chance to get on the ladder, cutting out ‘dead zones’ in the market."