The current rates and thresholds for land and buildings transaction tax (LBTT) in Scotland should be on a par with its English equivalent the stamp duty land tax (SDLT), according to a well-known property management firm.

D.J. Alexander, based in Scotland, wants to see greater investing in the housing market north of the border, and views a reduction in the LBTT as holding the key.

The company’s joint managing director, David Alexander, said: “In order to make Scotland a more appealing destination for investors the Scottish government should, at the very least, unify the rates and thresholds for LBTT with its English equivalent the stamp duty land tax.

“Although the LBTT threshold has already been raised due to the pandemic until the end of March [2021] it has not matched the offer in England so remains substantially higher for property investors, second homeowners, landlords and first-time buyers.”

Some Scottish government ministers accept that they could raise higher revenues by reducing the rates and threshold of LBTT, but they choose not to for the sake of political expediency, according to Alexander.

He added: “In these times when the Scottish government needs all of the funds it can get to cope with the economic fallout from the pandemic it must make sense to choose higher revenues over political point scoring.

“From next April I would urge the Scottish government to ensure we have a level playing field in property taxations with our English counterparts.

“We must do all we can to encourage property investors, landlords, second homeowners, and first-time buyers to look at Scotland as an equal market in terms of taxation with England and Wales. If it is not, then many potential homebuyers, investors and landlords will look elsewhere.”