Homeowners buying a second home or buy-to-let property will have to pay an additional supplement under new legislation which aims to give first time buyers “the greatest possible chance to get a foot on the property ladder”.

Published by the Scottish Parliament yesterday, the Land and Buildings Transaction Tax (LBTT) (Amendment) (Scotland) Bill proposes a supplement of three per cent of the total price of the property for all relevant transactions above £40,000, and will be paid in addition to the current LBTT rates.

The policy was announced last month by deputy first minister John Swinney as part of the Scottish Government’s draft 2016-17 budget.

Intended to take effect from 1 April 2016, the new supplement is estimated to raise about £23 million in 2016-17.

Mr Swinney said: “Our priority is to make sure that first time buyers have the greatest possible chance to get a foot on the property ladder.

“That is why I decided to take action to avoid any potential distortions which could arise in Scotland from the new higher rates of stamp duty land tax payable on the purchase of additional residential properties, announced by the Chancellor of the Exchequer in his Autumn Statement on 25 November 2015.

“This is particularly relevant to the purchase of additional residential properties, at the lower end of the market, which could make it more attractive to invest in such properties in Scotland compared to other parts of the UK.

“Our LBTT additional homes supplement will ensure that opportunities for first time buyers to enter the housing market in Scotland remain as strong as they possibly can.”