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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.
By Gary · Updated April 2026
8% ADS is charged on the full purchase price in addition to standard LBTT
Interest only — capital repayments are not allowable. Section 24 relief (20% credit) applied automatically.
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, 2026/27
See your true returns. Enter your property details, rent, and costs above to see net yield after all Scottish taxes.
Back to calculator ↑For a full guide to Scottish buy-to-let tax — covering ADS, Section 24, rental income tax at each AfC/Scottish band, and whether BTL is still worth it in 2026 — read our Scottish Buy-to-Let Tax guide.
Answers to common questions about this calculator.
Calculate your LBTT on any Scottish property purchase, including first-time buyer relief and ADS.
🏠See how much you could borrow based on your Scottish salary, with LBTT costs and first-time buyer relief included.
🏴Compare your total tax bill side by side — income tax, take-home pay, and property tax.
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.