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Ukrainian flat owner faces £9,000 Scottish home tax bill
Kateryna Stepanovych and her partner Mattias Lindgren withdrew an offer on a home in Ayrshire after learning she could owe £9,000 in Scottish second-home tax because she owns a flat in Ukraine. The case has prompted calls to review how the rules apply to people who fled conflict and are trying to settle in Scotland.
Stepanovych, 38, bought the Kyiv flat in 2018 and moved to Britain in 2023 after Russia’s invasion; the building was hit by shrapnel that May. Scotland’s Additional Dwelling Supplement can add an 8 per cent charge when a buyer owns another property, including overseas, on top of Land and Buildings Transaction Tax. Deputy First Minister Jenny Gilruth said there was no provision to waive the levy, while First Minister John Swinney said he would raise the case with Revenue Scotland.
In short
- Couple withdrew an Ayrshire home offer over a potential £9,000 tax bill.
- The charge applies because she owns a flat in Ukraine.
- Scottish ministers say they will look into the couple’s concerns.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Applying the Additional Dwelling Supplement consistently to properties owned anywhere helps prevent people from avoiding the charge by holding a home overseas, and supports a clear, predictable tax system. Exemptions based on individual circumstances could be difficult to define and administer, and might treat otherwise similar buyers differently.
The case against
A flat in a country someone fled because of war may not be a practical second home or a source of security, so treating it like an additional property in Scotland can impose a severe burden on people rebuilding their lives. A targeted exception or review could recognise displacement and hardship while keeping the general rule for ordinary second-home purchases.
Explained simply
Scotland’s Land and Buildings Transaction Tax is paid when someone buys a home. Buyers who already own another residential property may also have to pay the Additional Dwelling Supplement, an extra charge that can apply even if the other property is overseas.
Kateryna Stepanovych bought a flat in Kyiv before Russia’s full-scale invasion of Ukraine and later moved to Britain. Her case has drawn attention to how the tax rules apply to people displaced by conflict who want to buy a home in Scotland.
The Scottish Government sets the tax rules, and Revenue Scotland administers them. Deputy First Minister Jenny Gilruth said there was no provision to waive the supplement, while First Minister John Swinney said he would raise the case with Revenue Scotland.
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Originally published by Daily Mail as “Orkney couple face £9k second home tax on… ‘shrapnel-hit’ Kyiv flat”.