Scotland??s higher-priced property areas are likely to see a transaction boom over the next four months as buyers and sellers scramble to dodge huge mark-ups in stamp duty.

Scotland??s higher-priced property areas are likely to see a transaction boom over the next four months as buyers and sellers scramble to dodge huge mark-ups in stamp duty.

The Land and Buildings Transaction Tax, Scotland??s first big standalone tax affecting consumers, had already been seen as hitting buyers in more expensive areas when it arrives next April.

But the Chancellor??s emulation of its tiered approach, in an immediate switch to a tiered system in England and Wales, has cast a harsh spotlight on the new differentials on either side of the Border.

Philip Hogg, chief executive of Homes for Scotland, said: ??With all buyers purchasing homes over £325,000 previously set to be worse off under the new Scottish proposals, we have already raised our concerns that this risks stagnating the market by detrimentally impacting the middle and upper levels and called for the introduction of an additional band between £250,000 and £500,000 that would enable Scotland to remain competitive with the rest of the UK.??

He said after April house purchases over £255,000 would now be more expensive in Scotland. ??For example, the buyer of a £350,000 home in Scotland will pay £4,800 more in tax than their counterparts in England who will have seen their costs decrease.??

Stephen Hay at advisers Baker Tilly said: ??At £300,000 the cost is still £2,300 or 46 per cent more, at £700,000 is £22,300 or 89 per cent more and at £900,000 it is £42,300 or 120 per cent more. You can bet your mortgage that there will be a steep rise in residential property sales in Edinburgh, Glasgow and Aberdeen between now and April 2015.??

Alison Mitchell, at financial advisers Robson Macintosh in Edinburgh, said buyers at lower levels would be better off in Scotland. But she went on: ??I am seeing a client next week who was wanting to buy a house after April but they are jumping in and bringing it forward. Their stamp duty would have been £30,000, now they are going to be paying £50,000 unless they move quickly.??

In more positive moves for savers and the better off, the Isa limit will rise to £15,240, and Isas will be able to pass tax-free to a spouse on death.

Surviving spouses will be allowed an additional one-off ISA allowance, equal to the amount the deceased spouse had in their ISAs, which can be used from April 2015. Danny Cox at Hargreaves Lansdown said: ??This change has righted a wrong in the tax system which was the source of deep frustration and additional cost for surviving spouses.??

Annuities will also pass tax-free to a spouse if death is before 75, adding to the recent scrapping of the 55 per cent ??death tax?? on pensions, and putting annuities on the same footing as drawdown.

Andrew Tully at MGM Advantage warned: ??It is worth keeping in mind this change will only benefit the estate of those who die before age 75. If you are a healthy 65 year old, then you have a 90 per cent chance of surviving your 75th birthday. If you have moderate health conditions, for example diabetes or high blood pressure, then you have an 80 per cent chance of surviving your 75th birthday.??

Julie Hutchison at Standard Life said: ??The combined value of a surviving partner??s ISA account will ultimately be included in their own estate for IHT. Those near to or already over age 55 may want to consider moving some of these savings into a pension, potentially allowing the pension fund to be passed on to their children and grandchildren tax free.??

Fidelity??s retirement director Alan Higham said the new freedoms could lead to people in poor health applying to transfer their pensions out of final salary schemes ?? and being subject to medical checks.