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A Ukrainian woman who escaped the conflict in her country and resettled in Scotland faces a substantial property tax bill due to owning an apartment in Kyiv. Kateryna Stepanovych, aged 38, came across this unexpected charge while attempting to purchase a home in North Ayrshire with her partner, Mattias Lindgren. They were informed that the Additional Dwelling Supplement (ADS) would apply because Kateryna still holds a property abroad.
Kateryna had acquired the modest flat in 2018, prior to the invasion by Russia. She left Ukraine in 2023, fleeing the war and leaving the flat behind. The apartment building in Kyiv, a ten-storey structure, suffered damage from shrapnel during an attack in 2023, although her specific flat was not harmed. Mattias described it as a “miracle” that the property remains standing despite the conflict.
Living in Stromness, Orkney, the couple only learned of the £9,000 charge after submitting an offer on a house and reviewing solicitor paperwork. Unable to cover this additional cost, they were forced to retract their offer. Mattias expressed frustration at the situation, questioning, “Why should we be punished with this tax for a property that’s in a war zone?”
According to Scotland’s Revenue Scotland, the ADS imposes an 8% charge on buyers who already own another residence, including properties overseas. The tax is intended to deter multiple property ownership, especially second homes and rentals, and is levied alongside the Land and Buildings Transaction Tax. The couple sought help from Orkney MSP Liam McArthur, who approached Deputy First Minister Jenny Gilruth. However, Gilruth responded that current legislation does not permit exemptions or discretionary waivers for ADS, even in exceptional cases.
Liam McArthur raised the issue in the Scottish Parliament, questioning whether the tax was meant to have such consequences. First Minister John Swinney agreed to request a review of the case by Revenue Scotland, acknowledging the difficult circumstances the couple faces. Meanwhile, Kateryna and Mattias, who had planned to relocate this year, are now considering renting and delaying their property purchase. Mattias remarked on the hardship of adjusting their approach to buying a home, while Kateryna, who works in a factory and speaks English as a second language, has found the process especially challenging. The couple said they are currently “biding our time” as they explore possible options
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