Politics · United Kingdom · 21 hrs ago
Ukrainian refugee faces Scottish second-home tax over Kyiv flat
Kateryna Stepanovych, who fled Ukraine, and her partner Mattias Lindgren live in Orkney.
They planned to buy a home in Ayrshire, but Stepanovych still owns a flat in Kyiv.
That overseas property could trigger Scotland’s Additional Dwelling Supplement, an extra charge for buyers who own another home.
The levy can add 8 per cent to a purchase, on top of the usual property tax.
The couple say they could not afford the potential £9,000 bill, so they withdrew their offer and plan to rent instead.
Lindgren says the rules do not account for people who own a home in a war zone but are not using it as a second home or rental.
Scotland’s first minister will raise their case with Revenue Scotland, while ministers say they will look into the concerns.
Kateryna Stepanovych, who fled Ukraine and settled in Scotland, faces a potential £9,000 tax charge because she owns a flat in Kyiv.
The charge would apply under Scotland’s Additional Dwelling Supplement when she and her partner buy a home in Ayrshire.
The couple withdrew their offer because they could not afford the extra cost and plan to rent instead.
The Scottish Government says there is no provision to waive the levy in their circumstances.
First Minister John Swinney said he would raise the case with Revenue Scotland.
- Who
- Kateryna Stepanovych and her partner, Mattias Lindgren.
- What
- They face a potential £9,000 Additional Dwelling Supplement charge on a home purchase because Stepanovych owns a flat in Ukraine.
- When
- The couple were planning to buy a home after Stepanovych moved to Britain in 2023.
- Where
- The proposed home was in Ayrshire, Scotland; Stepanovych’s existing flat is in Kyiv, Ukraine.
- Why
- The Scottish tax can apply when a buyer owns another property, including one overseas.
Kateryna Stepanovych and Mattias Lindgren
Scottish Government
Application of the tax
Kateryna Stepanovych and Mattias Lindgren
Lindgren says the case shows not every second property is a buy-to-let or holiday home and argues cases should not all be treated alike.
Scottish Government
Deputy First Minister Jenny Gilruth said there was no provision in the law to disapply the levy.
Outcome sought
Kateryna Stepanovych and Mattias Lindgren
Lindgren has called for a change in the legislation.
Scottish Government
The government said ministers would look into the concerns but that it would be inappropriate to comment on individual taxpayers’ circumstances.
Stepanovych bought her flat in Ukraine.
Russia’s invasion began, four years after she bought the flat.
Stepanovych moved to Britain after fleeing the war; the building containing her flat was struck by shrapnel in May.
The couple made an offer on a home in Ayrshire but withdrew it because of the potential tax bill.
- Potential charge
- £9,000
- Tax
- Additional Dwelling Supplement, an additional 8 per cent charge
- Existing property
- Flat in Kyiv, Ukraine
- Proposed purchase
- Home in Ayrshire, Scotland
- Current home
- Orkney, Scotland
What people are saying
There are many people out there who have either fled a war-torn country or humanitarian crisis and want to rebuild their lives here in the UK, yet when they are wanting to purchase a property here in the UK to call home, they are being forced to pay money they do not necessarily have to be able to actually make the purchase.
Hopefully this will pave the way to a more reasonable resolution for a couple with enough on their plate at the moment.
It would be inappropriate to comment on the individual circumstances or tax affairs of taxpayers.