Changes made by the Scottish Government to its planned stamp duty replacement, which would have hit Edinburgh home-owners hardest, have been partially welcomed by Lothians MSP Gavin Brown.
Finance secretary John Swinney announced modifications to the Land and Buildings Transaction Tax (LBTT) following pressure by the party and property sector.
The level at which homebuyers will pay the “eye watering” 10 per cent rate has been raised slightly from £250,000 to £325,000, while the initial threshold for paying any tax at all has been increased.
It means the SNP has accepted much of what the Scottish Conservatives suggested as a solution to its “tax on aspiration”, hitting houses in Edinburgh particularly hard.
Tax cuts for Scotland of around £64 million by the Chancellor of the Exchequer George Osborne also allowed the Scottish Government more financial breathing space.
However, Mr Swinney has only used £53 million of the money freed up by Westminster, leaving an extra £11 million still to be passed on to taxpayers.
The Scottish Conservatives have urged him to use that extra money to increase the amount at which the 10 per cent kicks in to somewhere higher than £325,000, to lessen the impact on family homes in the capital.
Scottish Conservative finance spokesman and Lothians MSP Gavin Brown said:
“This is an encouraging start and indicates some progress in creating a fair system that benefits everyone.
“However, there is still £11 million to be used, and we will work to try and ensure that is passed onto those striving to buy a family home in the area they live.
“The threshold of £325,000 still represents quite a jump to go to 10 per cent, and in certain areas of Scotland that will still be a punishing measure.
“We need to ensure there is not a Scotland-only tax on aspiration.
“There also remains a risk with this low threshold – although it’s better than it was – that one part of the market will become stuck.
“That has implications for everyone else, including those just trying to get on the housing ladder.
“These changes would not have happened without pressure from the Scottish Conservatives and changes made by George Osborne.”