JOHN Swinney's new home buying tax will face a challenge when MSPs vote on the Budget at Holyrood next year.

The Scottish Conservatives yesterday pledged to bring forward amendments that would introduce lower tax rates for people buying mid-market properties.

First Minister Nicola Sturgeon said she would consider their proposals - but stressed 80 per cent of Scots homebuyers would be better off under the new Land and Buildings Transaction Tax (LBTT), the system set to replace Stamp Duty from April 1 next year.

Scots Conservative leader Ruth Davidson vowed to campaign "night and day" for changes to the LBTT after Chancellor George Osborne slashed Stamp Duty for thousands of homebuyers in his Autumn Statement.

Under his reformed system, which took effect yesterday, someone buying a £300,000 home will pay £5000 - £4000 less than previously.

However Scots will have to pay £7300 to buy a £300,000 home from April under LBTT.

The Scots Tories will seek to introduce a lower rate for properties priced from around £250,000 to £500,000 when MSPs vote on the 2015/16 Budget Bill.

Speaking at First Minister's Questions yesterday, Ms Davidson said: "Under this Government's Swinney tax, we now know that if you want to move up the property ladder it is going to cost thousands of pounds more.

"It is a left-wing nationalist tax on aspiration."

She added: "This is yet another ideological attack on the aspirations of middle Scotland."

She added later: "There is now a chance for the First Minister to halt this tax on aspiration by accepting our planned change to the forthcoming Budget.

??Failing to admit she is wrong on this will see the tax burden increasing for thousands across the country.??

Under the old Stamp Duty, rates were charged on the full price of homes, causing by spikes in the amount of tax due at the thresholds of £125,000, £250,000, £500,000 and £1million.

Both the reformed Stamp Duty and the LBTT do away with the so-called "slab effect" and introduce marginal rates, similar to income tax.

Under Mr Osborne's system, homes worth less than £125,000 will carry no tax and those priced between £125,001 and £250,000 will attract a two per cent levy.

Houses priced from £250,001 to £925,000 will be taxes at two per cent on the slice from £125,001 to £250,000 and at five per cent for the rest.

Mansions costing £925,001 to £1.5million will attract a 10 per cent rate and those over £1.5million a 12 per cent rate.

Though the principle is the same, the rates set by Mr Swinney are considerably different.

Tax becomes payable on homes over £135,000 and is charged at two per cent up to £250,000.

The rate then jumps to 10 per cent at prices between £250,001 and £1million. A 12 per cent rate applies above £1million.

The jump to a 10 per cent rate means the tax will be considerably higher in Scotland for properties at the middle and upper end of the market.

Anyone in Scotland buying a home costing more than £254,000 will be worse off after April.

Those buying a £400,000 house, for example, will attract Stamp Duty of £12,000 until April, after which homebuyers will have to pay £17,300 under the LBTT.

It is understood the Scots Tories want to insert an additional rate of five or six per cent for mid-market properties to bring rates closer to levels in England.

Ms Sturgeon said she would consider Conservative proposals but challenged Ms Davidson to explain how she would plug any shortfalls.

Defending the LBTT, she said the new tax was designed to reflect the Scottish property market, where the average house price is £170,000 compared with £270,000 in England, and said 80 per cent of buyers would be better off from April.

The First Minister told Ms Davidson: "If she wants to bring forward proposals that say that 20 per cent at the very top of the housing market should pay less than she is free to do so.

"She should also bring forward her proposals for who should pay more, or where the extra money should come from."

The Conservatives' chances of altering LBTT appear slim as Labour and the Lib Dems have backed Mr Swinney's proposals.

However, the party believes its stance will win support from middle class voters at the general election.

Homes for Scotland, which represents the house building industry, and property industry body the Scottish Property Federation both called for a review of LBTT following the Chancellor's statement.

Overall, the Chancellor's changes amounted to an £800million tax cut. However, Scotland's budget will be adjusted to reflect revenue from the old system when LBTT starts.

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