Ukrainian refugee faces £9,000 tax bill on Kyiv flat

Kateryna Stepanovych faces a potential £9,000 property tax charge in Scotland because she still owns a flat in Kyiv, Ukraine.

The 38-year-old factory worker fled her home country in 2023 after Russia invaded. She purchased the small apartment in 2018, before the conflict began. The building has sustained shrapnel damage to its exterior, though her specific unit remained intact.

Stepanovych and her partner, Mattias Lindgren, attempted to buy a house in North Ayrshire. Their solicitor informed them that the Additional Dwelling Supplement would apply. This rule requires buyers who already own another property, including those overseas, to pay an extra 8% in Land and Buildings Transaction Tax.

The couple could not afford the additional cost and withdrew their offer. Lindgren, who resides with his partner in Stromness, Orkney, questioned the logic of taxing a property located in an active war zone. He stated, "Why should we be punished with this tax for a property that's in a war zone?"

The couple contacted Liberal Democrat MSP Liam McArthur in the summer of 2026. His office advised them that their solicitors said nothing could be done under current rules. McArthur then raised the issue with Deputy First Minister Jenny Gilruth.

Gilruth replied in a letter stating that the legislation does not allow the Scottish government or Revenue Scotland to waive the charge on a case-by-case basis. McArthur presented the case to First Minister John Swinney in the Scottish Parliament on Tuesday. Swinney asked Revenue Scotland to investigate the specific situation.

The couple now plans to rent and delay their purchase. Stepanovych noted that navigating the process is difficult because English is not her first language. She said, "For me, it's difficult." The pair are currently waiting to explore further options while they sort out their housing plans.