Call for Forbes to extend the homes tax holiday

HOMEBUYERS in Scotland could be left trailing their counterparts in England if a property sales tax holiday is not extended, experts have warned.

Housing market chiefs said that those buying and selling houses north of the Border will be at a ‘disadvantage’ from the end of this month.

They have urged the Scottish Government to follow Westminster in extending the holiday on Land and Buildings Transaction Tax (LBTT) – Scotland’s equivalent of stamp duty – to September.

The point at which LBTT kicks in was raised to £250,000 from £145,000 last year, saving buyers in the affected bracket up to £2,100 – but only until the end of this month.

In his UK Budget announcement yesterday, Chancellor Rishi Sunak revealed a further six-month extension to the stamp duty holiday on homes worth up to £500,000 in England.

David Alexander, joint chief executive officer of Edinburgh property lettings firm apropos, said that keeping the nil-rate threshold of £500,000 to the end of June, then reducing the level to £250,000 until September 30 was ‘sensible’.

He added: ‘If Scottish Finance Minister Kate Forbes fails to match this continuation of the stamp duty holiday to June at the full rate and then a lower rate until the autumn, then it is clear that Scotland’s housing market will be put at a considerable disadvantage for the next six months.’

The warning comes as the number of residential sales halved between December last year and January this year in Scotland as stricter Covid-19 lockdown measures were introduced after Christmas.

Scottish Conservative finance spokesman Murdo Fraser said: ‘It is extremely disappointing that the SNP don’t want to continue this tax cut. We cannot see Scotland’s housing market lag behind elsewhere in the United Kingdom.’

A Scottish Government spokesman said: ‘The first-time buyer relief will continue... meaning that an estimated eightout-of-ten first-time buyers will pay no LBTT at all.’