Stamp duty reforms for Scotland

A change to stamp duty charges for the Scottish sector of the UK property market are to be phased in within three years as a result of the Scotland Bill. Several leading property groups north of the border welcome the long awaited reforms following repeated calls for a fairer and simpler property tax system. House prices across Scotland fell quite sharply as a result of the global financial crisis and while some major cities have seen prices improve other areas are yet to experience any notable signs of recovery. Experts from all areas of the UK property industry believe there are further changes urgently required to aid recovery of the ailing property market but as yet Westminster have no further plans to alter the dreaded property tax. The announcement by John Swinney included in the Land and Buildings Transactions Tax is expected to take into account the obvious differences between the commercial and residential property markets particularly at the higher rates of tax and is planned to take effect in 2015. Developers and investors alike eagerly await the full proposals yet to be detailed in full by the Scottish Government and the Scottish Property Federation believes the consultation document is a step in the right direction for the future of the Scottish sector of the UK property market.