Homeowners from fire-hit Edinburgh block of flats face losing tens of thousands of pounds in tax
Residents risk losing money after buying new homes but not being able to sell old flats
Homeowners forced out of an Edinburgh block of flats over cladding defects face losing tens of thousands of pounds if they have bought new properties.
Residents at the Bond Building in Breadalbane Street, Bonnington, were told at short notice in July that they should leave their homes on safety grounds ahead of remediation work following a major fire in the block two years earlier.
They were given no indication how long they might have to be out of their flats for, but there had been an earlier row after it was said the planned work on the flats was likely to take 80 weeks.
And some decided to buy a new home rather than live in temporary accommodation for such a prolonged spell.
But Edinburgh Northern Lib Dem MSP Sanne Dijkstra-Downie said those who had made such a purchase now risked being caught by the Scottish Government's second homes tax.
Speaking in the Scottish Parliament, she said: "Two and a half years on from the Bond Building fire, residents cannot live in, let alone sell, their homes because of ongoing safety and cladding defects and delayed remediation works.
"Some have since bought other homes and paid tens of thousands of pounds in second homes tax."
Under the rules, if people sell their old house within 36 months they can reclaim the tax, officially known as Additional Dwelling Supplement, but Ms Dijkstra-Downie said the Bond Building residents could miss out.
She said: "They are running out of time to get that money back through no fault of their own because, unlike in other parts of the United Kingdom, Scotland’s three-year repayment window offers no exceptions.
"Does the minister think that that is fair? Does she believe that there should be an extension that covers fire and cladding defects?"
Public Finance Minister Hannah Mary Goodlad said she recognised and sympathised with the circumstances the residents faced.
She continued: "It is important that, in our review, the Scottish Government considers any potential changes as part of a consistent, Scotland-wide approach, not for individual buildings.
"However, I would be happy to work with Sanne Dijkstra-Downie to understand how we can take the matter forward. I am open to listening and to speaking with her and constituents."
About 100 residents were evacuated from their homes after fire broke out in the Breadalbane Street flats shortly after 4am on March 14, 2024.
Two firefighters received minor injuries tackling the blaze. They were assessed at the scene and did not require hospital treatment.
Around 70 firefighters, 12 fire appliances and additional specialist resources attended the blaze.