The government has published draft legislation that jettisons the current so-called "slab" system, under which SDLT is levied at a single rate on the chargeable consideration for a transaction (old rules), and replaces it with a "progressive" system, under which SDLT is charged at several rates according to the portion of the total consideration falling within each of several bands (new rules). This is aimed at correcting market distortions for properties with a value close to the existing borders separating SDLT rate increments.

The new rules will apply only to residential property transactions with an effective date on or after 4 December 2014, subject to transitional arrangements (see below). Non-residential, mixed property and enveloped dwellings (see Practice note, SDLT: 15% rate on enveloping high-value residential property) are unaffected by these changes.

The residential SDLT rates applicable under the old rules (see Practice note, SDLT and stamp duty rates (for land): General rates of SDLT) will be replaced with the following bands:

For example, under the old rules, the SDLT charge on a residential property bought for £450,000 would be £13,500 (the entire consideration would be taxed at 3%). Under the new rules, the SDLT charge would be £12,500 (the first £125,000 would be taxed at 0%, the next £125,000 at 2% and the final £200,000 at 5%).

The effective rate of tax for properties with a chargeable consideration of £937,500 or less will be lower, or the same as, the effective rate of tax under the old rules. However, there will be an increase in the effective rate for most higher value properties. For example, a residential property bought for £1.25 million under the old rules would attract SDLT of £62,500 (effective rate 5%). Under the new rules, the charge would be £68,750 (effective rate of 5.5%).

Under transitional rules, buyers may elect to pay SDLT under the old rules in either of the following cases:

If a person has the right to choose to account for SDLT under the old or new rules, this is done simply by including the amount of SDLT in box 14 of the land transaction return (calculated according to which rules have been selected). Pending the development of HMRC's IT systems, a stand-alone online calculator is available (see HMRC: Stamp Duty Land Tax calculator).

The draft legislation, which will be introduced into Parliament in December 2014, will be contained in the Stamp Duty Land Tax Bill. The draft Bill contains consequential amendments to existing SDLT provisions, including the linked transactions rules and multiple dwellings relief. We will publish a separate update on these measures soon.

(Autumn Statement 2014, paragraphs 1.206-1.211 and 2.121, and Autumn Statement 2014: HMRC overview paragraph 1.1.)

The government announced that it will extend the scope of multiple dwellings relief (MDR) (see Practice note, SDLT: Multiple dwellings relief) to lease and leaseback arrangements of shared ownership properties entered into with a qualifying body (for example, a housing association).

Currently, the acquisition of a superior interest subject to a lease for an initial term of more than 21 years does not attract MDR (see Practice note, SDLT: Multiple dwellings relief: Interests subject to leases). The amending legislation will be included in the Finance Bill 2015 and will take effect from the date that the Finance Bill 2015 receives Royal Assent.

(Autumn Statement 2014, paragraphs 1.139 and 2.122.)

Seeding relief for property authorised investment funds (PAIFs) and co-ownership authorised contractual schemes (CACS) will be introduced. There will be no SDLT charge on transactions in units for CACS that invest in property (subject to resolution of avoidance issues). This measure should make PAIFs and CACS more attractive to investors and may see fewer properties held offshore.

Legislation will be included in the Finance Bill 2016.

(Autumn Statement 2014, paragraph 2.123.)

The government will change the definition of "financial institution" in section 73BA of the Finance Act 2003 (the definition used to identify those financial institutions that may be party to arrangements qualifying for SDLT alternative property finance relief (see Practice note, Sharia-compliant transactions: tax: Stamp duty land tax). The new definition will include all persons authorised to provide home purchase plans (see Practice note, Regulated activities: home reversion and home purchase plans: What is a regulated home purchase plan?). The change will take effect from the date on which the Finance Bill 2015 receives Royal Assent.

(Autumn Statement 2014, paragraph 2.124.)

In the 2014 Autumn Statement , the government announced that the rates of ATED will be increased by an amount 50% above the rate of inflation. The originally stated aim was for the charges to increase only in line with the Consumer Prices Index (see Practice note, Annual tax on enveloped dwellings (ATED): Annual chargeable amount).

For the period from, and including, 1 April 2015 to 31 March 2016, the ATED charge on residential properties will be:

These changes are to be included in the Finance Bill 2015.

In addition to these changes, on 1 April 2015 a new band comes into effect for properties worth more than £1 million up to £2 million, for which the annual charge will be £7,000. This new band was announced in the 2014 Budget, see Legal update, 2014 Budget: property implications: ATED extended in two stages and is brought into force by section 109 of the Finance Act 2014.

(Autumn Statement 2014, paragraphs 1.212, 1.213 and 2.125, and Autumn Statement 2014: HMRC Overview, paragraph 1.2.)

While ATED has been successful in raising tax receipts, the burden of complying with the obligations can be onerous, which the government acknowledged in the 2014 Budget (see Legal update, 2014 Budget: property implications: High value UK residential property held by non-natural persons). In July 2014, HMRC launched a consultation on options for reducing the compliance burden, see Legal update, Consultation on easing the administrative burden of ATED.

In the 2014 Autumn Statement, the government announced that the Finance Bill 2015 will include provisions that change the filing obligations and information requirements with respect to properties within the ATED that are eligible for a relief. These changes will take effect from 1 April 2015.

(Autumn Statement 2014 , paragraph 2.139.)

A structural review of business rates, to report by Budget 2016, has been announced. Terms of reference for the review will be published in due course. The announcement has been welcomed by the British Property Federation and the British Retail Consortium.

(Autumn Statement 2014, paragraph 2.132.)

The small business rate relief provides 100% relief for eligible businesses occupying premises with a rateable value of £6,000 or below. There is a tapered relief from 100% to zero for properties with a rateable value between £6,001 and £12,000.

The temporary increase in the level of small business rate relief was due to end on 31 March 2015. It will now be extended for a further year, until 31 March 2016.

(Autumn Statement 2014, paragraph 2.127.)

The transitional rate relief scheme sets an annual cap on increases in business rates bills. Under the scheme, which was due to end in 2015, bills for small properties could not increase by more than 15% and for medium properties by more than 25%. Transitional arrangements will be extended until 31 March 2017 for properties with a rateable value of £50,000 or below that face large bill increases.

(Autumn Statement 2014, paragraph 2.128.)

The business rates discount for retail and food and drink premises with a rateable value of £50,000 or below will be increased for one year, from 1 April 2015, to £1,500 (up from £1,000 for 2014-15).

(Autumn Statement 2014, paragraph 2.130.)

The multiplier is increased each year in line with inflation (by reference to the Retail Prices Index in the preceding September). In 2015-16, the business rates multiplier will be capped at 2%.

(Autumn Statement 2014, paragraph 2.131.)

The government will publish a paper on the nature and scale of business rates avoidance in December 2014 to which it will invite comments.

(Autumn Statement 2014, paragraph 2.150.)

Alterations to rateable values will only be permitted to be backdated to the period from 1 April 2010 to 1 April 2015 for valuation office agency alterations made before 1 April 2016 and ratepayer appeals made before 1 April 2015.

(Autumn Statement 2014, paragraph 2.129.)

Businesses have called for clearer billing, better information sharing and a more efficient appeals system. Later this month the government will provide an update on how it proposes to respond.

(Autumn Statement 2014, paragraph 2.126.)

Business rates policy in Wales will be fully devolved to the Welsh Government. The devolved regime will be operational by April 2015.

(Autumn Statement 2014, paragraph 2.25.)

In October 2014, the government announced plans to proceed with a third high speed link, HS3, to reduce journey times across the northern regions. The government has created Transport for the North which is a new body to consist of the main northern city regions.

The government and Transport for the North will produce a comprehensive transport strategy for the north. The strategy will include options, costs and a delivery timetable for a HS3 east/west rail connection. An interim report will be published in March 2015.

The government is also considering whether to accelerate construction of the HS2 Phase 2 route from north of Birmingham to Crewe. This is subject to decisions on HS2 Phase 2 to be made in 2015. For more information on HS2, see Practice note, High speed rail link between London, the West Midlands and the North.

(Autumn Statement 2014, paragraph 1.190.)

Invitations to tender for the next Northern and Trans-Pennine Express rail franchises will be published soon. Subject to business case development, the new franchises will:

(Autumn Statement 2014, paragraph 1.192.)

In June 2013, the government announced £28 billion in enhancements and maintenance of national and local roads (see Legal update, Investing in Britain's future: property and construction implications).

The 2014 Autumn Statement confirms that the government has committed £15 billion between 2015/16 and 2020/21 to improve the national road network with works including resurfacing 80% of the national network, adding extra lanes to key routes and improving junctions on the national road network. Local road networks are also earmarked for improvement.

(Autumn Statement 2014, paragraphs 1.115 and 2.189.)

Part of the focus on roads is in support of the northern powerhouse, the government plan to link major cities in the north of England to encourage prosperity and urban growth. Cities such as Sheffield, Newcastle, Hull, Sunderland, Leeds, Manchester and Liverpool will benefit.

£6 billion of investment is earmarked for the northern road network including:

(Autumn Statement 2014, paragraphs 1.191-1.193.)

At a more local level:

The government will provide £114 million between 2015-16 and 2017-18 to continue the Cycle City Ambition scheme in the eight cities it already covers (Greater Manchester, West Yorkshire, Birmingham, West of England, Newcastle, Cambridge, Norwich and Oxford). This scheme will provide capital funding for better cycle infrastructure (for example, segregated lanes and improved junctions).

(Autumn Statement 2014, paragraph 2.207.)

The government has announced that following the Fair Playing Field Review, published on 27 March 2013, it will refund VAT incurred by hospice charities. Details to follow.

(Autumn Statement 2014, paragraph 2.20.)

The government will provide £15 million for a new Listed Places of Worship: Roof Repair Fund. In 2015, the fund will be available across the UK for the maintenance of church roofs.

(Autumn Statement 2014, paragraph 2.252.)

The government confirmed its announcement (in 2013) that it will invest £2.3 billion in flood defences. This money will be applied to over 1,400 flood defence schemes over the next six years. An additional £60 million has been allocated to the Lower Thames Scheme beyond 2021 (subject to business case and local partnership contributions).

In the Finance Bill 2015, the government will legislate to ensure that, from 1 January 2015, business contributions to Flood and Coastal Erosion Risk Management projects will be deductible expenditure for corporation tax and income tax purposes.

(Autumn Statement 2014, paragraphs 1.116, 2.103 and 2.216.)

For a detailed analysis of the recent flood defence announcements see Legal update, Flood defence projects to receive government funding.

For more information on the shale gas announcements in the 2014 Autumn Statement see Legal update, 2014 Autumn Statement: key environmental announcements: Shale gas and carbon capture and storage.

The government is committed to increasing the supply of housing and has announced that:

(Autumn Statement 2014, paragraphs 1.130-1.136.)

The government has announced that it will take the following steps to speed up the planning decision process:

(Autumn Statement 2014, paragraphs 1.141 and 2.44-2.49.)

The government plans to lay the National Networks National Policy Statement before Parliament in December 2014 for consideration and a formal vote. For further information on National Policy Statements, see Practice note, Planning Act 2008: National Policy Statements.

(Autumn Statement 2014, paragraph 2.50.)

On 2 December 2014, the National Infrastructure Plan was published. Chapter 15 of the plan concentrates on planning, performance and delivery and refers to the steps announced in Speeding up the planning system. For further information, see Legal update, National Infrastructure Plan 2014: property aspects.

The government announced it will extend affordable housing capital investment to 2018-19 and 2019-20 at £955 million per year. It is on track to deliver 165,000 affordable homes over the 2015-18 period.

(Autumn Statement 2014, paragraphs 1.138 and 2.37.)

The government confirmed it will:

(Autumn Statement 2014, paragraphs 1.139-1.140 and 2.42.)

The government announced it will consult on ways to increase the borrowing capacity of housing associations in relation to the valuation of properties transferred from local authorities.

(Autumn Statement 2014, paragraph 2.40.)

Grahame Park, Blackwall Reach, Aylesbury Estate and New Union Wharf regeneration projects have been approved for funding under the £150 million fund announced in the 2014 Budget. The projects are aimed at stimulating the regeneration of large social housing estates but are still subject to due diligence and contract negotiations.

(Autumn Statement 2014, paragraphs 1.134 and 2.41.)

The government has asked the Council of Mortgage Lenders (CML) to liaise with Which magazine with the aim of making mortgagee fees more transparent and helping borrowers choose the best mortgage deal more easily.

(2014 Autumn Statement, paragraph 2.186.)

The government announced that additional funding will be provided to honour the government's commitment to complete England's coastal path by 2020. For more information on coastal paths see, Practice note, Marine and Coastal Access Act 2009: coastal access.

(Autumn Statement 2014, paragraph 2.217.)

The government announced that Ordnance Survey will create a free online map of all the publicly-accessible green space in England and Wales. At the moment, the general public can access areas of the countryside for walking or other leisure activities. Currently they would have to search for these areas through their local council, but this map would provide the general public with easier access to this information.

(Autumn Statement 2014, paragraph 2.219.)

The government has announced that it will increase the amounts that can be invested in an individual organisation and qualify for Social Investment Tax Relief (SITR). SITR has been in place since 6 April 2014, to incentivise direct private investment in social enterprises.

The amount that individuals can invest in social enterprises are amended as follows:

The measure will allow certain small agricultural and horticultural projects that will not be eligible for direct payments under the Common Agricultural Policy reforms to be qualifying trades for the purposes of SITR. For more information on SIRT see, Practice note, Social investment tax relief (SITR).

(Autumn Statement 2014: policy costings, page 16.)