Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of taxing landlords on their income rather than profit on the supply of affordable rented accommodation in Scotland.

The restriction of finance costs tax relief for landlords does not mean that landlords will be taxed on their income. Landlords will still be able to deduct other costs incurred in letting out a property when calculating their taxable profits, and will receive tax relief on their finance costs at the basic rate of tax.

Only 1 in 5 landlords are expected to pay more tax as a result of this change. Given the small proportion of the housing market affected by this, the Government does not expect a significant impact on rent levels or the supply of rented accommodation. The Office for Budget Responsibility also expect the impact on the housing market will be small.

Landlords do not provide the location of their let properties on their tax return.