Scotland

Military Personnel In Scotland To Be Permanently Protected From Higher Tax

The Ministry of Defence says it hopes the move, which affects more than 7,000 personnel, will help improve recruitment and retention.

Thousands of British military personnel in Scotland are to be permanently protected from higher income taxes.

The Ministry of Defence (MOD) has promised an annual payment will continue to be provided to service members earning £28,443 or more per year to ensure all British troops, regardless of where they are based, pay the same income tax. 

Personnel living in Scotland are charged a higher level of income tax than their counterparts in the rest of the UK.

The support was first brought in two years ago following Scottish tax hikes, sparking concerns over the potential impact on morale and Scotland becoming a less attractive place for personnel to be posted.

Minister of State for Defence, Baroness Goldie, said it is "only right" that personnel are "treated equally and fairly wherever they are based".

Ministry of Defence MOD main building Whitehall
The MOD's decision means the payment will now continue indefinitely (Picture: Crown Copyright).

"We want to reassure our brave troops that they won’t be penalised for simply doing their duty by having to pay higher taxes in a certain part of the UK and they will be properly compensated in their payslips each year," she said.

The new measures, which will now apply indefinitely rather than being renewed annually, will affect over 7,000 personnel stationed north of the border.

Nearly two-thirds of all Armed Forces personnel based in Scotland are liable for Scottish Income Tax and are required to pay more.

The MOD said it believes the move will help with recruitment and retention.