advisoryInstitute of Financial Accountants (IFA)

Accountants for Landlords & Property Investors in Glasgow

Glasgow landlords pay income tax on their rental profit, with mortgage interest relief now limited to a 20% tax credit under Section 24. QA FinTax prepares your SA105 return, claims every allowable expense, handles capital gains on a sale, and gets you ready for Making Tax Digital — cutting your property tax bill legally.

Glasgow has one of the UK's largest private rental markets, and it is also one of the most heavily taxed areas of personal finance. Section 24 quietly pushed many landlords into higher tax bands, the rules on holiday lets changed in 2025, and Making Tax Digital is now arriving for landlords too. Whether you own one flat in the West End or a portfolio across the city, we make sure you are paying the right tax and not a pound more.

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What Our Landlord & Property Tax Service Includes

SA105 property income pages prepared and filed
Section 24 finance-cost relief calculated correctly
Allowable expense reviews to cut your taxable profit
Capital gains tax on disposals, with the 60-day report handled
Advice on holding property personally versus in a limited company
Making Tax Digital setup for landlords over the £50,000 threshold

How Is Rental Income Taxed?

You pay income tax on your rental profit — rent received, less allowable expenses — at your normal Scottish income tax rate. Since Section 24, mortgage and other finance costs are no longer a deductible expense; instead you get a 20% basic-rate tax credit, which is what pushed many higher-rate landlords' bills up.

Allowable: letting agent fees, repairs and maintenance, landlord insurance, ground rent, and replacement of domestic items
Not allowable as an expense: mortgage interest — relieved instead as a 20% tax credit (Section 24)
The £1,000 property allowance can be claimed instead of expenses if your costs are low
The Rent a Room Scheme gives £7,500 tax-free if you let a furnished room in your own home

What Is Section 24 and How Does It Affect You?

Section 24 removed landlords' ability to deduct mortgage interest from rental income. You now pay tax on your full rent and receive a 20% tax credit for finance costs instead. For a basic-rate taxpayer the effect is roughly neutral; for a higher or top-rate landlord it means real tax on money that went straight to the lender. It is the single biggest reason Glasgow landlords come to us — and the main driver of the "own it personally or through a company?" question.

How Much Capital Gains Tax Will You Pay on a Sale?

When you sell a rental property in Scotland you pay capital gains tax on the profit, and you must report and pay it quickly — within 60 days of completion, long before your normal tax return.

Capital gains tax on residential property, 2026/27
Situation	Rate / rule
Basic rate taxpayer	18%
Higher or additional rate taxpayer	24%
Annual exempt amount	£3,000 of gains tax-free
Reporting and payment deadline	Within 60 days of completion

Private Residence Relief may remove or reduce the gain on a property that was once your main home. Late 60-day reports attract penalties, so this is one to plan before you complete, not after.

Should You Hold Property Personally or in a Company?

There is no universal answer, and anyone who gives you one without seeing your numbers is guessing. A limited company still gets full relief on mortgage interest and pays corporation tax rather than income tax, which can suit higher-rate landlords growing a portfolio. But it brings running costs, potential capital gains and stamp-taxes on transfer, and tax on getting the money back out. We model both for your actual position before you decide.

Do Landlords Have to Use Making Tax Digital?

Yes, if your income is high enough. Since April 2026, landlords with qualifying gross income over £50,000 must keep digital records and send HMRC quarterly updates; the threshold falls to £30,000 in April 2027 and £20,000 in April 2028. An annual spreadsheet is no longer compliant for those landlords. We set up the software and run the quarterly cycle. Note too that the separate furnished holiday lettings regime was abolished from 6 April 2025 — former holiday lets are now taxed as an ordinary property business.

Landlord & Property Tax in Glasgow — Frequently Asked Questions

If your rental profit is more than £2,500, or your gross rental income is over £10,000, you must file a self assessment return with the SA105 property pages. Even below that, letting income usually needs reporting. We prepare and file it for you.

Section 24 stops you deducting mortgage interest from rental income. You pay tax on the full rent and get a 20% tax credit for the interest instead. Basic-rate landlords are broadly unaffected; higher and top-rate landlords pay noticeably more, which is often the trigger to review your structure.

Letting agent and management fees, repairs and maintenance, landlord insurance, ground rent and service charges, and the cost of replacing domestic items such as furniture and white goods. Mortgage interest is not an expense — it is relieved as a 20% tax credit under Section 24.

For 2026/27, 18% if you are a basic-rate taxpayer and 24% if you are higher or additional rate, after your £3,000 annual exemption. You must report and pay within 60 days of completion. Private Residence Relief may reduce the gain if the property was once your home.

It depends on your tax rate, how many properties you have, and whether you are reinvesting or drawing the income. A company keeps full mortgage-interest relief but adds costs and tax on extracting profit. We model both against your actual figures rather than give a one-size-fits-all answer.

Yes, once qualifying income passes the threshold — £50,000 from April 2026, £30,000 from April 2027, £20,000 from April 2028. Affected landlords must keep digital records and send HMRC quarterly updates. We handle the setup and the quarterly filing.

Official sources

Rates and thresholds are stated for the 2026/27 UK tax year and are for general guidance only. They are not a substitute for advice on your own circumstances.