A bill allowing the Scottish Parliament to set and collect stamp duty from the sale of properties has been approved by MSP's.

This is a move which could potentially reinvigorate a large section of the Scottish housing market, with many buyers unable or unwilling to look at property over the current stamp duty threshold which currently stands at over £125,000. This means that any buyer paying over £125,000 for a property has to pay an additional 1% levy on that purchase.

The proposed new threshold, which has gone through a consultation process with the Scottish Government, has been suggested at and an indicative rate given, of £180,000 and will change from a flat rate of 1% up to £250,000, to a progressive, stepped rate above £180,000. For example someone buying a house now at £190,000 currently pays £1900 in Stamp Duty, the new tax will see the same buyer pay just £750.

The new rates and bands for the tax will not be fully revealed until September 2014 when the Scottish Finance Secretary presents his budget to the Scottish Parliament at Holyrood. Ministers want the revenue tool to come into force from April 2015.