Although potentially good news for the lower end of the property ladder, concerns are emerging over a new land tax to replace stamp duty in Scotland from 2015.

The UK-wide system of stamp duty will be replaced in Scotland by a new form of land tax in a move that has been welcomed in some quarters but is causing concern elsewhere in the industry.

Due to come into force in April 2015, the new Land and Buildings Transaction Tax will be based on the sale price of Scottish properties.

The idea is that it will deliver a progressive rate of taxation, although there are fears that in practice it could also have detrimental effects on parts of the market.

Andrew Smith, partner in Strutt & Parker’s Edinburgh office, said: “If this Land and Buildings Transaction Tax becomes law, the example scenarios published with the bill show that anyone buying a property for more than circa £320,000 will pay more tax than at present. To a buyer, the only figure that counts is the total amount which has to be paid for a property and if a larger proportion is going to go on tax then it is only logical that the seller will receive less or lose that buyer to a lower price bracket.

“While the number of properties above £320,000 sold in Scotland each year is a relatively small percentage of the total sales, there are big regional variations and this proposed tax does not take that into account. The average price of a house in Edinburgh or Aberdeen is far higher, for example, than the average price of a house in the north west Highlands, where buyers would be more likely to benefit from the proposed changes.

“If this bill becomes law, buyers will undoubtedly compare the tax to whatever the situation is in England and Wales in 2015, which may lead to some interesting differentials for properties just over the Border. For example, a buyer looking for a small cottage near Berwick would, in this scenario, be better buying in Scotland while the buyer looking for a country house would be better buying south of the border.

“On the positive side, if this bill is approved, it will inject confidence at the lower end of the housing market, which makes up a significant proportion of property sales in Scotland. It will make it a little easier for first time buyers and for those buying property with a value of up to around £320,000, depending on the threshold levels adopted which we hope to know by September 2014 at the latest. Hopefully this will create a ripple effect throughout the market and add some momentum.”

The Edinburgh Solicitors Property Centre (ESPC) warned it could place a “significant financial burden” on families in the Scottish capital and indeed all areas of the country with above-average house prices. It welcomed the move but warned there would be significant risks to the market if the rates are not set at the appropriate levels.

Responsibility for taxes on land transactions passed to the Scottish government as part of the Scotland Act 2012.