Moving to or from Scotland: tax, student loans, property and council tax
Moving to or from Scotland: tax, student loans, property and council tax
Moving between Scotland and the rest of the UK feels like a move within one country, but your money does not treat it that way. Income tax on your wages, the tax on buying a home, your council tax bill and even what you pay at the pharmacy all change.
This guide covers each change with 2026/27 figures. For the full list of Scottish differences and tools, see our Scotland hub.
Try it yourself: the Scottish Income Tax Calculator shows what your salary is worth on each side of the border, and the Stamp Duty Calculator compares LBTT with SDLT at the same price.
Who counts as a Scottish taxpayer
You pay Scottish income tax if you live in Scotland. Where your employer is based is irrelevant. HMRC's test is your main home, which gov.uk says is usually where you live and spend most of your time. If you have homes on both sides of the border, the one where you spend less time can still be your main home if your family lives there, most of your possessions are there, or you are registered there with a bank, GP or car insurer.
If you have no settled home, for example as an offshore or mobile worker, HMRC counts days. A day counts where you were at midnight, and if you spent more days in Scotland than elsewhere in the UK, you are a Scottish taxpayer for the whole year.
Moving mid-year: the whole year follows one rule
There is no apportionment. According to gov.uk, you pay Scottish income tax for a tax year if you spend more of that year in Scotland than anywhere else in the UK, and any change of rate is backdated to 6 April of the year you moved. Tax deducted from your wages or pension is then adjusted so the year's total comes out right.
Worked example: moving north. Priya earns £60,000 and moves from Manchester to Glasgow on 1 October 2026. She has spent 178 days of 2026/27 in England and will spend 187 in Scotland, so she is a Scottish taxpayer for the whole of 2026/27. Her income tax for the year is £1,750.05 higher than if she had stayed in England, including the six months she lived in Manchester. Once HMRC changes her code to S, payroll catches up on the difference over the remaining months.
Worked example: moving south. Callum earns the same and moves from Edinburgh to Leeds on the same date. He is a rest-of-UK taxpayer for the whole year, and saves the same £1,750.05.
Timing matters: a few days either side of the halfway point can decide which system applies for the whole year.
| Salary | Extra Scottish income tax for a full year (2026/27) |
|---|---|
| £30,000 | £0 (Scotland is £34.93 cheaper) |
| £45,000 | £396.05 |
| £60,000 | £1,750.05 |
| £100,000 | £3,300.05 |
National Insurance is UK-wide, so it does not change with a move. Our Scottish income tax guide explains why the gap opens up so quickly above £43,662.
Telling HMRC, and checking the change
You must tell HMRC your new address when you move to or from Scotland. Use the change of details service on gov.uk rather than relying on your employer to pass it on.
Then check:
- Your tax code. A Scottish taxpayer's code starts with S, for example S1257L. A code without S after a move north means you are being taxed at rest-of-UK rates, and the shortfall will be collected later. An S code left in place after a move south means you are overpaying.
- Your Self Assessment return, if you file one. The online return has a box to say you pay Scottish income tax.
- Your pension relief. If you move north and your pay is between £43,663 and £50,270, you now pay 42% on that slice and can claim an extra 22% relief on personal pension contributions under relief at source. If you move south, that claim falls away below £50,270. The Pension Tax Relief Calculator shows the figures.
- Marriage Allowance. In Scotland the receiving partner must pay no more than the intermediate rate, usually income up to £43,662, against £50,270 in England. A couple claiming it in England may lose it by moving north, and gain it by moving south. See our Marriage Allowance guide.
Savings interest and dividends are taxed at UK rates wherever you live, so a move does not change tax on those.
Student loans: your plan stays the same
Your student loan plan is fixed by the student finance body you applied to and when you started the course, not by where you live now. gov.uk states that if you applied to the Student Awards Agency Scotland (SAAS), you are on Plan 4. A Scottish graduate who moves to London stays on Plan 4, and an English graduate who moves to Aberdeen stays on Plan 2 or Plan 5.
The plan matters because the thresholds differ. All three plans take 9% of income above the threshold:
| Plan | 2026/27 threshold | Annual repayment on £40,000 |
|---|---|---|
| Plan 4 (Scotland) | £33,795 | £558.45 |
| Plan 2 (Wales, and England for 2012 to 2023 starts) | £29,385 | £955.35 |
| Plan 5 (England, from August 2023) | £25,000 | £1,350.00 |
Check the plan on your first payslip after a job change. The Plan 4 calculator shows your repayments.
Buying a home across the border
The tax on buying a home depends on where the property is, not where you lived before. Buying in Scotland means Land and Buildings Transaction Tax (LBTT), paid to Revenue Scotland. Buying in England or Northern Ireland means Stamp Duty Land Tax (SDLT), and in Wales, Land Transaction Tax.
| Price | LBTT (Scotland) | SDLT (England) |
|---|---|---|
| £250,000, home mover | £2,100 | £2,500 |
| £250,000, first-time buyer | £1,500 | £0 |
| £300,000, home mover | £4,600 | £5,000 |
| £300,000, buying before selling | £28,600 | £20,000 |
The last row is where cross-border moves go wrong. If you buy before your old home sells, both systems treat you as owning two homes, and a home anywhere counts. Revenue Scotland's guidance includes property elsewhere in the UK or abroad when counting your dwellings for the Additional Dwelling Supplement.
Worked example. You still own a house in Leeds and complete on a £300,000 flat in Edinburgh. You pay £4,600 LBTT plus 8% ADS of £24,000. If the Leeds house sells within 36 months, you can reclaim the £24,000. Moving the other way, buying a £300,000 home in York while your Edinburgh flat is on the market costs £20,000 in SDLT, including the 5% surcharge, and gov.uk explains when the higher rates can be refunded once your previous main home is sold within 36 months. Our LBTT guide covers ADS and reclaims in detail, and the LBTT Calculator works out the figures.
Selling your old home
Capital Gains Tax is UK-wide, so the rules are the same on both sides of the border. If the home has been your only main residence for the whole time you owned it, and you have not let it out or used part of it exclusively for business, Private Residence Relief means no CGT is due.
If you let the old home out instead, part of a later gain may be taxable: see the Capital Gains Tax Property Calculator.
Council tax and water
You must register for council tax with your new council. The structure differs:
- Scotland. Bands A to H based on 1991 values, with Scottish Water's water and waste water charges added to the same bill. At Band D in Edinburgh for 2026/27 that is £1,626.05 of council tax plus £652.32 of water charges.
- England. Bands A to H, also based on 1991 values but with different band limits and ratios. Water is billed separately by your water company.
The 25% single person discount exists in both, and in Scotland it reduces the water charges too. If you leave a property empty or keep it as a second home in Scotland, councils can charge a premium. Our guide to council tax and water charges in Scotland covers bands, discounts and appeals, and the Council Tax Estimator works out a bill from your band.
Health and education
Prescriptions. Prescription charges were abolished in Scotland from 1 April 2011 under the 2011 Scottish regulations. The exemption applies to Scottish prescription forms dispensed in Scotland, so register with a GP in your new area promptly. An English prescription taken to a Scottish pharmacy is still charged.
University tuition fees. For eligible undergraduates studying in Scotland, SAAS can pay tuition fees, but only if the student is ordinarily resident in Scotland on the relevant date, which is usually the first day of the first academic year, and meets the UK residence conditions. Moving to Scotland mainly to study does not count. Check the SAAS residence conditions before fixing a move date.
Frequently asked questions
I live in Scotland but work in England. Which tax do I pay? Scottish income tax. HMRC looks at where your main home is, not where you work or where your employer is based.
If I move halfway through the year, do I pay each system for part of it? No. You pay one system for the whole tax year, decided by where you spent more of the year, backdated to 6 April.
Does my student loan switch to the local plan? No. Your plan follows the funding body you applied to. A SAAS loan stays Plan 4 wherever you live.
The bottom line
Cross the border and income tax switches for the whole tax year, backdated to 6 April, so tell HMRC and check your tax code. Your student loan plan, NI and CGT rules do not change. Property tax follows the property, and buying before you sell can cost thousands up front, refundable only once the old home sells.
Compare your salary on both sides with the Scottish Income Tax Calculator, and use the Scotland hub for every other Scottish tool.
Related calculators and guides
- Scotland hub, Scottish tax and money tools in one place
- Scottish Income Tax Calculator, your salary in Scotland and the rest of the UK
- Stamp Duty Calculator, LBTT, SDLT and LTT side by side
- LBTT Calculator, LBTT and ADS on a Scottish purchase
- Student Loan Calculator, Plan 4, Scottish student loan repayments
- Scottish income tax 2026/27 guide, who pays more and how to cut the bill
- Buying a home in Scotland: LBTT explained, ADS and reclaims in detail
This article is for general guidance only and is not personalised tax advice. Tax rules are complex and your circumstances may differ. For advice tailored to your situation, speak to a qualified accountant or tax adviser. Figures are for the 2026/27 tax year and sourced from gov.uk.
Sources
Rates and rules in this article are taken from the official pages below. Figures were checked against these sources at the last review date shown above; always confirm against the source before acting.
- GOV.UK: Income Tax in Scotland, if you move to or from Scotland
- GOV.UK: Income Tax in Scotland, if you live in more than one home
- GOV.UK: Tell HMRC about a change to your personal details
- GOV.UK: Which student loan repayment plan you are on
- Revenue Scotland: Land and Buildings Transaction Tax
- GOV.UK: Stamp Duty Land Tax residential property rates
- GOV.UK: Tax when you sell your home
- legislation.gov.uk: NHS (Free Prescriptions and Charges for Drugs and Appliances) (Scotland) Regulations 2011
- mygov.scot: Council Tax
About the author
Alexandre Bernier, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.
Rates and thresholds in this article are taken from HMRC and GOV.UK. See our editorial policy for how content is sourced, reviewed and corrected. This is general information, not regulated financial advice.