We face paying £9,000 tax even though our second home is in a war zone

A woman with long blonde hair next to a man with black hair and a dark beard

A Ukrainian woman who fled to Scotland after Russia invaded her homeland has been told she could face a £9,000 property tax charge because she still owns a flat in Kyiv.

Kateryna Stepanovych, 38, discovered the potential charge when she tried to buy a house in North Ayrshire with her Scottish partner Mattias Lindgren.

The couple were told the Additional Dwelling Supplement (ADS) charge would apply because she already owned a property overseas.

Kateryna bought the small flat in 2018, before Russia's invasion. She fled the war zone in 2023, leaving the property behind.

A slightly blurry image of a block of flats with signs of damage, and two fire engines sit outside.

The conflict has seen shrapnel strike the front of her 10-storey apartment building, damaging its exterior and a neighbouring property. Her own flat remained undamaged.

"The fact that the property is still there is a miracle," Mattias said.

The couple, who currently live in Stromness in Orkney, only became aware of the £9,000 charge when they put down an offer on the property they were planning to buy and Mattias looked through the paperwork from their solicitor.

Unable to afford the additional cost, they had to withdraw their offer.

Mattias said: "Why should we be punished with this tax for a property that's in a war zone?"

Four firefighters in protective gear standing in front of a burning building. One of them is walking towards the flames while the other three watch.

Under Revenue Scotland's rules, the Additional Dwelling Supplement Charge can see house buyers facing an additional 8% charge if they already own another property, including overseas.

It was introduced by the Scottish government primarily to target people who are buying second or buy-to-let homes and is paid in addition to Land and Buildings Transaction Tax.

The couple got in touch with Orkney MSP Liam McArthur in the summer after being told by their solicitors there was nothing they could do about the charge.

McArthur then contacted Deputy First Minister Jenny Gilruth, who responded with a letter which stated that there are "no provisions within the legislation that allow either the Scottish government or Revenue Scotland to disapply ADS on a discretionary or case-by-case basis."

A man in a grey suit and wearing a blue tie and lilac shirt speaks in the Scottish Parliament with his hands upturned in front of him

Lib Dem MSP McArthur raised the couple's case in the Scottish Parliament on Tuesday, when he asked First Minister John Swinney whether he "agrees with me that this is surely not the intended purpose of the tax?"

Swinney said he would ask Revenue Scotland to investigate the case, adding that he could understand why the rules had created the situation the couple were facing.

Kateryna and Mattias had hoped to relocate this year, but are now considering renting while postponing their plans to buy.

"It's been quite hard because we've had to rethink how we're approaching buying a property," Mattias said.

Kateryna, who works in a factory, has found dealing with the issue particularly challenging because English is not her first language.

"For me, it's difficult," she said, adding there was little else she could do beyond providing documents from Ukraine.

The couple said they are now "biding our time" while exploring their options.

Original source We face paying £9,000 tax even though our second home is in a war zone

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