The Scottish Government has announced plans to change the rates of Property Purchase Tax from next April.
This will mean that there will be no tax on properties selling for less that £135,000.
For properties selling for between £135,000 and £250,000 a marginal rate of 2% will apply (ie only to the proportion above £135,000).
For properties of £250,000 to £1m a marginal rate of 10% will apply.
Properties selling for over £1m will attract a marginal rate of 12%.
This amendment to the property tax raises several questions.
1) Is it fair?
2) Is it too complex?
3) What effect will it have on the property market in the months before it takes force?
4) What effect will it have on the property market after it takes force?
5) Will it heat up or cool down the Scottish property market?