Scope: Scotland. Figures verified against the Scottish Government’s published rates and bands for 2026-27 and Revenue Scotland on 16 August 2026. Rates change at least annually — check the year before relying on any figure here.
Our compliance check now covers Scotland, and so does the fine calculator. Enter a Scottish postcode and both answer in Scots law, cited to Scottish instruments — the check with your council’s registration and HMO position where we hold it, the calculator with the Scottish maximum for each offence and, where the consequence is not a fine, what it actually is. Still England and Wales only: the tenancy agreement checker, whose findings come from England and Wales statutes.
What is devolved, and what is not
This is the part that causes most of the confusion, because the answer is “some of it”.
| Tax | Who sets it for a Scottish landlord |
|---|
| Income tax on rental profit | Scottish Parliament — rates and bands on non-savings, non-dividend income |
| The personal allowance | UK-wide. Not devolved. |
| Property purchase tax | Scotland — Land and Buildings Transaction Tax, not SDLT |
| Capital gains tax | UK-wide. Not devolved. |
| Corporation tax | UK-wide. Not devolved. |
| The finance cost restriction | UK-wide, and it applies in Scotland exactly as elsewhere. |
So a Scottish landlord holding personally pays Scottish rates on rental profit, UK rates on any gain when they sell, and LBTT rather than SDLT when they buy.
Scottish income tax bands, 2026-27
Scotland has six bands. The personal allowance is £12,570 and is not devolved.
| Band | Income | Rate |
|---|
| Starter | £12,571 – £16,537 | 19% |
| Basic | £16,538 – £29,526 | 20% |
| Intermediate | £29,527 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Over £125,140 | 48% |
Earnings over £100,000 reduce the personal allowance by £1 for every £2 above that figure, which is a UK-wide rule and produces the familiar effective spike between £100,000 and £125,140.
Why the higher rate threshold is the number to watch
The higher rate starts at £43,663 and is charged at 42%. For a landlord whose employment income already sits near that level, rental profit is taxed at 42% from the first pound above it. The intermediate band at 21% is narrow, and rental profit is stacked on top of other non-savings income — so a modest portfolio can cross two thresholds in a single year.
Who is a Scottish taxpayer
It is decided by where you live, not where the property is. If your main residence is in Scotland for most of the tax year, you pay Scottish rates on your non-savings, non-dividend income — including rental profit from a property in England. And a landlord living in England who owns a Scottish flat pays the rest-of-UK rates on that profit.
That surprises people in both directions, and it is the single most common misunderstanding in this area.
LBTT and the Additional Dwelling Supplement
Scotland has its own property transaction tax: Land and Buildings Transaction Tax, under the Land and Buildings Transaction Tax (Scotland) Act 2013, collected by Revenue Scotland. SDLT does not apply to Scottish property.
The Additional Dwelling Supplement
ADS is charged on the purchase of an additional dwelling — a buy-to-let, a second home — above the relevant threshold. The rate is 8%, applying to transactions entered into on or after 5 December 2024, when it rose from 6%.
ADS is charged on the whole consideration, not on the slice above a threshold. On a £200,000 purchase that is £16,000 in ADS alone, payable on top of the LBTT otherwise due. It is the single largest transaction cost in a Scottish buy-to-let and the one most often left out of a first appraisal.
Relief can be available where an ADS charge arose on replacing a main residence and the previous one is subsequently sold within the permitted period. The conditions are specific — check them at Revenue Scotland rather than assuming.
Practical points
- Model the 42% band, not the 40% one. Scottish higher-rate is 42%, and advanced is 45% from £75,001. Appraisals built on rest-of-UK rates understate the tax on a Scottish-resident landlord’s profit.
- Put ADS at 8% into the purchase model on day one.
- The finance cost restriction still applies. Mortgage interest is relieved as a basic rate tax reducer, and that is a UK-wide rule — but the interaction with Scotland’s narrower bands can push a landlord further up the table than the same numbers would elsewhere.
- Incorporation is a UK question with a Scottish overlay. Corporation tax is not devolved, but the personal rates you are comparing against are — which changes the arithmetic of the comparison.
Information tool, not legal or tax advice. Scottish law only. Figures are for the 2026-27 tax year, verified 16 August 2026. Take advice on your own position.
Common questions
What income tax do Scottish landlords pay on rental profit?
Scottish rates, if they are a Scottish taxpayer. For 2026-27 there are six bands on a personal allowance of £12,570: starter 19% to £16,537, basic 20% to £29,526, intermediate 21% to £43,662, higher 42% to £75,000, advanced 45% to £125,140, and top 48% above that. Rental profit is non-savings income and stacks on top of employment income.
Am I a Scottish taxpayer if my property is in Scotland?
Not necessarily — it depends on where you live, not where the property is. If your main residence is in Scotland for most of the tax year you pay Scottish rates on rental profit, including profit from a property in England. A landlord living in England who owns a Scottish flat pays the rest-of-UK rates on that profit. It catches people in both directions.
What is the Additional Dwelling Supplement in Scotland?
A supplement charged on the purchase of an additional dwelling such as a buy-to-let or second home, on top of LBTT. The rate is 8% for transactions entered into on or after 5 December 2024, when it rose from 6%. It is charged on the whole consideration rather than on a slice, so a £200,000 purchase carries £16,000 of ADS before any other LBTT.
Does stamp duty apply in Scotland?
No. Scotland has Land and Buildings Transaction Tax under the Land and Buildings Transaction Tax (Scotland) Act 2013, collected by Revenue Scotland. SDLT does not apply to Scottish property at all.
Is capital gains tax devolved to Scotland?
No. Capital gains tax is UK-wide, as are corporation tax, the personal allowance and the finance cost restriction on mortgage interest. What is devolved is the rates and bands of income tax on non-savings, non-dividend income, and property transaction tax in the form of LBTT.