NICOLA Sturgeon has been urged to follow Westminster's lead and revise the levy paid on house sales. 

The Scottish Government confirmed earlier that there were "no plans" to reduce Land and Buildings Transaction Tax (LBTT) despite Rishi Sunak's announcement to cut the equivalent, stamp duty, in England. 

Alister Jack, the Secreyary of State for Scotland, usaid the Scottish Government should consider implementing the same changes, which will see the leduty scrapped for property sales of up to £500,000.

He said: "The stamp duty cut gives a helping hand to the housing market and building trades in England. I urge the devolved administration to use their powers to do the same in Scotland." 

The Scottish Chambers of Commerce chief executive Dr Liz Cameron also urged the Scottish Government to implement a similar scheme.

She said: "This is a great opportunity for the Scottish Government to align the Land and Buildings Transaction Tax (LBTT) with the Stamp Duty holiday announced today which would stimulate the Scottish housing market and play an important role in protecting and creating jobs in the construction industry and the supply chain.

“The Scottish Government must also take the baton and enable plans to decarbonise Scotland’s housing stock to ensure we meet net-zero ambitions.”

However some experts have said the Westminster scheme would have little effect in the north of England, mainly benefitting the South. Others warn that when the scheme ends next year it could cause a slump in the housing market. 

The Resolution Foundation stated:  "Temporarily raising the stamp duty threshold to £500,000 will largely impact on higher house price parts of the UK.

"Someone buying the average home in the North East will see no gain, while a buyer of an average home in London will save over £14,000.

"The average first-time buyer already pays no stamp duty in all regions and nations except London, and therefore won’t benefit."

Helen Miller, deputy director of the Institute for Fiscal Studies, said: "Stamp duty is a damaging tax in normal times and acts to reduce the number of transactions; the holiday will boost transactions and provide a stimulus through the additional spending that is associated with moving house.

“The holiday is due to end in March 2021. If the economy is still not recovered and if people have bought forward transactions, this could lead to a depression of housing sales while the economy is still weak.”