If you own a rental property in Glasgow, how your rental profit is taxed depends on where you live, not where the property is. This guide explains how it works, with and without a mortgage, and shows worked examples at today’s rates and at the rates announced in the recent Westminster Budget.
If you live in Scotland, your rental profit is taxed at Scottish rates, and the recent Westminster Budget does not change them. The Scottish Budget follows on Thursday 3 December 2026, and we will update this guide on that day.
If you live in England, Wales or Northern Ireland, the Westminster Budget on 28 October 2026 announced new property rates from 6 April 2027: 24%, 44% or 49%, depending on your income, compared with 20%, 40% and 45% today.
What the recent Westminster Budget announced
There are two rises of two percentage points each, and both start on 6 April 2027. The first was announced in the Budget of November 2025. The Westminster Budget on 28 October 2026 added a further two points on top. The second rise still has to be passed into law, so it stands as an announced rate for now.
| Rate | Today | Planned since November 2025 | Announced 28 October 2026 |
|---|---|---|---|
| Basic | 20% | 22% | 24% |
| Higher | 40% | 42% | 44% |
| Additional | 45% | 47% | 49% |
Who it affects
- Living in England, Wales or Northern Ireland. The new property rates apply to you, wherever your rental property is. A Glasgow property does not make you a Scottish taxpayer. Wales may set its own property rates in future.
- Living in Scotland. Scottish Income Tax already applies to your rental profit, at Scottish rates, and the rises in the Westminster Budget do not apply to Scottish taxpayers. The new separate property rates are a UK measure for England, Wales and Northern Ireland. The Scottish Government is due to be given the power to set separate rates for property income in future and has not yet said what it will do. The Scottish Budget follows on Thursday 3 December 2026, and we will update this guide on that day. Our article on what Scottish landlords need to know about the 2026 and 2027 changes covers the wider picture.
- Living abroad, including Ireland. UK tax still applies to rent from a UK property. There is more on this further down.
Your accountant can confirm which applies to you.
How rental profit is taxed
Rental profit is the rent you collect in the tax year, less the allowable costs of running the let, such as management fees, repairs, insurance and letting costs. If it works out better, you can claim the £1,000 property allowance instead of deducting costs. That allowance is not changing.
Your rental profit is then added on top of your other income, such as a salary or pension. The part that falls in the basic rate band is taxed at the basic rate, the part in the higher rate band at the higher rate, and so on. So the rate you pay on rent depends on how much other income you already have.
Without a mortgage. The tax is the rental profit multiplied by your rate. Nothing else is involved.
With a mortgage. For a residential let held in your own name, mortgage interest is not counted as a cost, so the profit that gets taxed is higher than the cash you actually keep. To make up for that, you receive a reduction on your tax bill worth the basic rate on the interest you paid. The reduction is the same for everyone, whichever rate they pay. From April 2027 it follows the property basic rate, which is 24%. In straightforward cases that is how it works, and your accountant can confirm your own figures.
A worked example
A landlord collects £12,000 a year in rent. Running costs come to £2,000, so rental profit is £10,000. We have assumed all of the profit is taxed at the landlord’s rate, and the figures are before any other allowances or reliefs.
The middle column in each table shows what was planned until 28 October. Both rises start on the same day, but showing them one at a time makes the size of each step easy to see.
No mortgage
| Taxpayer | Today | First 2 points (announced November 2025) | Both rises (from April 2027) |
|---|---|---|---|
| Basic rate | £2,000 | £2,200 | £2,400 |
| Higher rate | £4,000 | £4,200 | £4,400 |
| Additional rate | £4,500 | £4,700 | £4,900 |
Each step adds £200 for every £10,000 of profit, so £400 in total.
With a mortgage
The same landlord also pays £4,000 a year in mortgage interest. This is a higher-rate taxpayer.
| Today | First 2 points | Both rises (from April 2027) | |
|---|---|---|---|
| Tax on £10,000 profit | £4,000 (40%) | £4,200 (42%) | £4,400 (44%) |
| Less mortgage interest reduction | £800 (20% of £4,000) | £880 (22% of £4,000) | £960 (24% of £4,000) |
| Tax to pay | £3,200 | £3,320 | £3,440 |
With a mortgage, each step adds £120 instead of £200, so £240 in total instead of £400. The reduction for mortgage interest rises along with the rates, which softens the increase. A basic-rate landlord with the same figures pays £1,200, then £1,320, then £1,440. An additional-rate landlord pays £3,700, then £3,820, then £3,940. The rise is £120 a step in every case.
Rising costs are part of the same picture for many landlords, and we look at them in our article Are Rising Costs Pushing Good Landlords Out of the Market?
If you live abroad, including Ireland
A landlord who lives abroad for more than six months of the year pays UK tax on UK rental income. A letting agent collecting the rent must deduct tax from it under the Non-Resident Landlords Scheme and pay it to HMRC each quarter, unless HMRC has authorised the landlord to receive rent without deduction. From April 2027 the amount deducted follows the property basic rate, which is 24%. Landlords who have had tax withheld can still file a UK tax return for any further tax due, with credit given for tax already withheld.
If you live in Ireland, the same rent can also be taxable there. HMRC notes that double tax relief may be available, and your Irish adviser can confirm how it applies to you.
How we help
It makes no difference where you live
If you own a let property in Glasgow, we can help wherever you live. Two of our packages are worth comparing with what you pay now.
If you are a self-managing landlord, our Already Tenanted package takes over the day-to-day running of your tenancy for 6% per month (5% + VAT), with no set-up fee, and your tenant stays where they are.
If you use another agent, you can switch to us for 7% per month (5.83% + VAT), also with no set-up fee, and we pay £250 cashback after 90 days of management.
If you are paying more than that, or not getting the service you expect, it is worth a conversation. Every package has a minimum management fee of £60 per month, and all the fees we publish on our site are inclusive of VAT, so nothing is hidden or added on later.
Landlords living abroad have the Non-Resident Landlords Scheme work handled as standard, whichever package they join. To talk it through, call us on 0141 553 2677 (from overseas, +44 141 553 2677).
Written 29 October 2026 from the Budget announcements and HMRC and GOV.UK guidance. This is general information, not tax advice; please speak to your accountant about your own position.
Managing a tenancy yourself?
Our Already Tenanted package takes over your existing tenancy without disturbing your tenant, for 6% including VAT. You stay informed while we handle the repairs, certificates and paperwork.