Capital Gains Tax on Property in Scotland (2026/27)
Last updated 23 June 2026 · 9 min read · By the LandlordTaxAi Editorial Team
The short answer
Capital Gains Tax is not devolved. A Scottish landlord pays the same 18% and 24% residential rates and gets the same £3,000allowance as anyone in England. Scotland’s different income tax bands do not change your CGT, because CGT always uses the UK-wide £37,700 basic-rate band. The only thing that is genuinely different north of the border is LBTT and ADS when you buy.
Thousands of people search for a “Scotland capital gains tax calculator” every month expecting a special set of rates. There isn’t one — and understanding why will stop you over- or under-paying. This guide explains exactly what is the same, what is genuinely different, and walks through a worked example for a Scottish buy-to-let. Prefer to skip the maths? Use our free CGT calculator — it applies the correct UK-wide rates whether your property is in Glasgow or Guildford.
Capital Gains Tax is a UK-wide tax
The Scotland Act devolved certain taxes to Holyrood — Income Tax rates and bands on earnings, and the property purchase tax (LBTT). Capital Gains Tax was not among them. It is set by the UK Parliament and administered by HMRC for the whole of the UK. That means the 2026/27 figures below apply identically in Edinburgh, Cardiff, Belfast and London.
| 2026/27 figure | Scotland | Rest of UK |
|---|---|---|
| Residential CGT rate (basic band) | 18% | 18% |
| Residential CGT rate (higher band) | 24% | 24% |
| Annual exempt amount | £3,000 | £3,000 |
| Basic-rate band for the 18%/24% split | £37,700 | £37,700 |
The income-tax-band myth
Here is where almost everyone trips up. Scotland has its own Income Tax bands, and a Scottish taxpayer reaches the higher rate at a lower income than an English one. It feels logical that this would push more of your gain into the 24% band. It does not.
For Capital Gains Tax, HMRC uses the UK basic-rate band of £37,700 for everyone, including Scottish taxpayers. You add your gain on top of your income, see how much of that £37,700 band is left, tax that slice at 18%, and tax the rest at 24%. The Scottish starter, basic and intermediate bands are irrelevant to this calculation.
The catch competitors get wrong:many “Scotland CGT calculators” quietly feed your gain through Scottish income tax thresholds and produce a higher number. That is incorrect. If two calculators disagree purely because of Scotland, the one using £37,700 is right.
Free calculator · no sign-up
Capital Gains Tax calculator
Estimate the CGT on your property sale for 2026/27
Result
- Total gain
- £66,000
- Less annual exempt amount
- − £3,000
- Taxable gain
- £63,000
- CGT at 24%
- £15,120
- Net proceeds after CGT
- £50,880
Estimate based on verified 2026/27 UK rates. Informational only — not personal tax advice.
Want the correct figure in seconds?
Our free CGT calculator uses the UK-wide 18%/24% rates and £37,700 band — the right answer for a Scottish property too.
Open the free CGT calculatorWhat IS different: LBTT and ADS
The genuinely Scottish part of the story happens when you buy. Instead of Stamp Duty Land Tax you pay Land and Buildings Transaction Tax (LBTT), and on a second home or buy-to-let you also pay the Additional Dwelling Supplement (ADS) — currently 8% of the entire purchase price. Both are set by the Scottish Government via Revenue Scotland.
The good news for CGT: the LBTT and ADS you paid on purchase are allowable buying costs. They come off the gain in exactly the same way SDLT does elsewhere in the UK — so a high ADS bill at purchase quietly reduces your eventual CGT bill at sale.
A full worked example
Stuart is a Scottish higher-rate taxpayer. He sells a buy-to-let flat in Aberdeen that he never lived in.
| Sale price | £230,000 |
| Less: selling costs (agent + legal) | − £4,500 |
| Less: purchase price | − £150,000 |
| Less: buying costs incl. LBTT + ADS | − £14,500 |
| Gain | £61,000 |
| Less: annual exempt amount | − £3,000 |
| Taxable gain | £58,000 |
| CGT at 24% (higher-rate taxpayer) | £13,920 |
Because Stuart’s income already uses up his basic-rate band, the whole gain is taxed at 24% — the same result an English higher-rate taxpayer would get on identical numbers. His Scottish income tax position made no difference. The £14,500 of LBTT and ADS he paid at purchase saved him roughly £3,480 in CGT (24% of £14,500) by reducing the gain.
Frequently asked questions
Is Capital Gains Tax different in Scotland?
No. Capital Gains Tax is a UK-wide tax and is not devolved to the Scottish Parliament. The rates on residential property (18% and 24% for 2026/27) and the £3,000 annual exempt amount are identical in Scotland, England, Wales and Northern Ireland. The only property taxes that are devolved in Scotland are the ones you pay when you buy — Land and Buildings Transaction Tax (LBTT) and the Additional Dwelling Supplement (ADS) — which replace Stamp Duty Land Tax.
Do Scottish income tax bands change my Capital Gains Tax?
No, and this is the single most common mistake. Scotland sets its own Income Tax rates and bands, but Capital Gains Tax always uses the UK-wide basic-rate band of £37,700 to decide how much of your gain is taxed at 18% versus 24%. Even though a Scottish taxpayer reaches the higher Income Tax rate at a lower income, that lower Scottish threshold is ignored for CGT. So a Scottish landlord and an English landlord with identical incomes and identical gains pay exactly the same Capital Gains Tax.
What property taxes ARE different in Scotland?
When you buy, Scotland charges Land and Buildings Transaction Tax (LBTT) instead of Stamp Duty Land Tax, plus the Additional Dwelling Supplement (ADS) on second homes and buy-to-lets — currently 8% of the whole price. These are deductible as buying costs when you later calculate your capital gain, just like SDLT is in England. There is no devolved equivalent of CGT itself.
Does a Scotland CGT calculator use different rates?
It should not. Any reputable Scotland CGT calculator uses exactly the same 18% and 24% residential rates and the same £3,000 allowance as a UK calculator, because the tax is identical. If a calculator produces a different CGT figure purely because you ticked 'Scotland', it is wrong. The only Scotland-specific number that belongs in your workings is the LBTT you paid on purchase, which reduces the gain.
When do I report and pay CGT on a Scottish property?
The 60-day rule applies UK-wide. If you sell a Scottish residential property at a gain and there is tax to pay, you must report it and pay through HMRC's UK Property Account within 60 days of completion, regardless of where in the UK you or the property are. This is separate from your Self Assessment return.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 23 June 2026 · Based on HMRC guidance on Capital Gains Tax rates and allowances and Revenue Scotland guidance on LBTT and ADS. Figures are for the 2026/27 tax year. This article is informational only and does not constitute tax advice. Always check the latest details on GOV.UK or with a qualified accountant.