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Cut In Scottish Property Transaction Tax Would Aid Recovery

Replicating stamp duty cut in Scotland would significantly boost the prospects for sustained market recovery, leading property consultancy Galbraith said today.

Reacting to the Summer Economic Statement, Simon Brown, partner at Galbraith, said:

Raising the stamp duty threshold will be a timely boost for both buyers and sellers in England and Northern Ireland. As in many sectors, the COVID-19 crisis has had an unprecedented effect on the housing market and this kick-start will go some way to ensuring the recovery can get underway quickly and be sustained in the medium-to-long term. 

We would urge the Scottish Government to now review the situation north of the border in order to provide the same stimulus. The property market in Scotland does not exist in a bubble and greater competitiveness in England will have a knock-on effect on transactions here. A reduction in Land and Buildings Transaction Tax (LBTT) would boost activity and may actually increase the overall tax take whilst supporting movers and the property sector more generally. We are optimistic for the recovery of the Scottish market but this needs to be supported by the right fiscal conditions to be sustained.