Scottish Budget 2025:
What It Means For Landlords In Edinburgh

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The 2025 Scottish Budget has introduced several updates that could impact landlords across Edinburgh. Whether you own a single rental property or manage a larger portfolio, it’s essential to stay informed about these changes to ensure compliance and optimise your property investments. Here’s a breakdown of the key points: 

  1. Scottish Income Tax Updates

The Scottish Rate of Income Tax (SRIT) applies to taxpayers whose main residence is in Scotland. While there won’t be any new tax bands introduced, there are some updates to thresholds: 

  • From April 2025, the Basic and Intermediate rate thresholds will increase by 3.5%. 
  • The Higher, Advanced, and Top rate thresholds remain frozen at their current levels. 

These changes highlight the importance of understanding how your rental income aligns with these thresholds to ensure accurate reporting and tax planning. 

  1. Land & Buildings Transaction Tax (LBTT)

The LBTT rates for both residential and non-residential properties will stay the same. However, there’s a notable update: 

  • The Additional Dwelling Supplement (ADS) has increased from 6% to 8% for purchases completed after 5 December 2024. 
  • If legal missives were signed on or before 4 December 2024, the previous 6% rate will still apply. 

This adjustment could affect the cost of acquiring additional properties, making it vital to factor this into your investment strategy. 

  1. Making Tax Digital For Income Tax (MTD for IT)

The rollout of Making Tax Digital (MTD) is set to transform how landlords manage their tax obligations. The new timelines are: 

  • April 2026: MTD for IT mandated for landlords with annual property income over £50,000. 
  • April 2027: MTD for IT mandated for landlords with annual property income over £30,000. 
  • Future date (TBC): MTD for IT for those earning over £20,000. 

MTD requires landlords to maintain digital business records and submit quarterly returns via compatible software. If you haven’t already, now is the time to explore options for streamlining your record-keeping to ensure a smooth transition. 

For more information, visit the HMRC website. 

Supporting Landlords  

At Clan Gordon, we understand how important it is for landlords to stay informed and compliant. While we don’t offer tax advice, we’re here to support you with expert property management services, from proactive maintenance to tenant communication. 

If you’re unsure how these updates might affect your tax obligations, we recommend consulting a qualified tax advisor or visiting the HMRC website for more details. 

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Stay Ahead In 2025 

Ready to make the most of your property investments in Edinburgh? Schedule a call or get a free property valuation. Let’s make 2025 your most successful year yet. 

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