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Property Tax
Calculate the true cost and return of a Scottish buy-to-let investment, including LBTT, ADS, income tax, and Section 24.
The agreed price for the buy-to-let property
Expected monthly rental income
Interest only — not capital repayments
Buy-to-let investors in Scotland face two extra costs compared to England. The Additional Dwelling Supplement is 8% (England: 5%), and rental income is taxed at Scottish rates up to 48% (England: 45%). Combined, these make Scottish BTL significantly more expensive.
Since April 2020, landlords can no longer deduct mortgage interest from rental income. Instead, you get a 20% basic-rate tax credit. Scottish Higher-rate landlords effectively pay 22% more tax on mortgage interest than they could before Section 24 (42% rate minus 20% credit = 22% net cost per pound of interest).
Worked example: £200,000 property, £900/month rent, £6,000 annual mortgage interest, Scottish Higher-rate taxpayer:
| Item | Amount |
|---|---|
| LBTT + ADS upfront cost | £17,100 |
| Annual gross rent | £10,800 |
| Mortgage interest | £6,000 |
| Taxable profit (can't deduct interest under S24) | £10,800 |
| Tax at 42% | £4,536 |
| Section 24 credit (20% of £6,000) | -£1,200 |
| Net tax | £3,336 |
| Net profit | £1,464 |
| Net yield on £200,000 | 0.73% |
| Band | Standard rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| £325,001 - £750,000 | 10% |
| Over £750,000 | 12% |
| Plus ADS on full price | 8% |
Source: Revenue Scotland, 2025/26
See your true returns. Enter your property details, rent, and costs above to see net yield after all Scottish taxes.
Back to calculator ↑Calculate your LBTT on any Scottish property purchase, including first-time buyer relief and ADS.
💷See your Scottish income tax across all 6 bands, with an England comparison built in.
💰See your exact take-home pay monthly, weekly, daily, and hourly after all Scottish deductions.
This calculator provides estimates only and does not constitute financial or tax advice. Always verify with Revenue Scotland, HMRC, or mygov.scot, and speak to a qualified financial adviser for advice specific to your circumstances.