The Land and Building Transactions Tax (Scotland) Bill proposes those buying properties under £175,000 will pay no Stamp Duty while charges for those buying more expensive properties will be in proportion to the size of the purchase.
Scottish Finance Secretary John Swinney told BBC Radio Scotland: “With parliament’s approval, the passing of this bill will be a huge milestone for Scotland – it will enable us to set and collect taxes in a more cost effective and fairer way than the UK government.
“This bill will give us the opportunity to better support first-time buyers trying to get onto the housing ladder or families buying bigger homes that better suit their needs.”
Stamp Duty currently works on a slab system where charges rise abruptly with a little increase in price.
Critics of the reform have warned families in expensive areas such as Edinburgh could face a hike in taxes of several thousand pounds.
In most cases, anyone purchasing a property under £2m will pay the same or less under the new regime, while those purchasing a higher value will pay more. But those purchasing a house for £250,000 will have to pay £500 more.
However, the Council of Mortgage Lenders has welcomed the proposal and called for the UK government to follow the Scottish government’s lead on introducing a more progressive Stamp Duty.
