New rules confirm timing for Scottish and Welsh property tax rates

A new statutory instrument has been laid confirming the appointed day and tax year for separate property income tax rates in Scotland and Wales, as provided for under the Finance Act 2026.

The instrument officially confirms that section 8 of, and Schedule 2 to, the Finance Act 2026 come into force on 16th September 2026, with the new provisions taking effect starting in the 2027–28 tax year. These provisions treat property income differently for tax purposes depending on whether a landlord is a Scottish or Welsh taxpayer.

​This is a technical commencement instrument. It does not itself set out the rates. Landlords should expect further HMRC guidance on how the new rates will work in practice.

This affects landlords who are Scottish taxpayers or Welsh taxpayers with property income, starting in the 2027–28 tax year. ​Landlords in England and Northern Ireland are not affected by this change.

​While the effective date (16th September 2026) and tax year (2027–28) are now officially confirmed, the actual tax rates have not yet been published.

Landlords should look out for official guidance from HMRC or the Scottish and Welsh Governments detailing the specific rates before they come into effect.

• Check whether you're a Scottish or Welsh taxpayer for income tax purposes, as this determines whether the change applies to you
• Watch for HMRC guidance detailing the actual tax rates that will apply
• Check with an accountant about how this may affect your property income tax calculation once the specific rates are published