Ben Finnie

The ongoing debate over property tax reform in England and Wales continues to make headlines. With talk of major changes – from Kemi Badenoch’s suggestion that a future Conservative government could abolish Stamp Duty altogether, to reports that Chancellor Rachel Reeves may replace it with a new system – it’s easy to think this is an issue confined to “south of the border”. But in reality, any such reforms could have a meaningful ripple effect here in Scotland too.

Earlier this year, new Stamp Duty Land Tax (SDLT) rules were introduced in England and Wales. The nil-rate band was reduced from £250,000 to £125,000, while first-time buyer relief now applies up to £300,000 rather than £425,000. The five per cent surcharge on second homes and buy-to-let properties, introduced in 2024, also remains in place.

In Scotland, our Land and Buildings Transaction Tax (LBTT) operates differently, with thresholds and rates set by the Scottish government. While major changes ahead of an election year are unlikely, the decisions made in Westminster still matter – especially as shifts in demand, pricing, and investor behaviour across the UK can influence our own housing market.

For example, if Stamp Duty were to be abolished in England and Wales, it could inject momentum into the wider property market. Increased buyer activity and rising values south of the border may strengthen confidence and stability across the UK, offering indirect benefits for Scottish homeowners and sellers.

That said, Scotland continues to chart its own course. The Additional Dwelling Supplement (ADS) here currently sits at eight per cent, maintaining a clear distinction between Scotland’s approach and that of our neighbours. Any potential alignment down south could in fact make Scotland’s market appear more consistent and predictable in comparison – a definite plus for investors and those considering relocation.

For buyers and sellers, the key message is one of confidence. Waiting for policy details to unfold elsewhere could mean putting plans on hold indefinitely. The Scottish property market remains resilient and active, with healthy demand, competitive pricing, and a diverse range of opportunities – from city-centre flats to rural family homes.

While over £11 billion was raised via Stamp Duty in 2024, the devolved nature of our tax system gives Scotland greater autonomy and stability. This is an advantage worth celebrating. By keeping a close eye on developments in England and Wales – without letting them dictate our decisions – buyers and sellers can continue to move forward with clarity and optimism.

As always, professional advice is invaluable when navigating the property landscape. But one thing is certain: Scotland’s market remains strong, dynamic, and full of potential – regardless of what happens south of the border.

Ben Finnie is a property sales director at Gilson Gray