British military personnel in Scotland will be protected from forthcoming tax increases under new plans.
Around 8,000 regular troops were set to be left worse off by rises recently announced by the Scottish Government, but these will be compensated with an annual payment.
Service personnel in Scotland, regardless of where they are deployed or where their families are based, will now pay the same income tax.
Military personnel who pay Scottish Income Tax will be getting an annual "mitigation payment"... here's why.
The Defence Secretary said:
"It is completely wrong for the brave men and women of our Armed Forces to be punished for serving in Scotland by unfair raids on their pay packets by the Scottish Government.
"That's why we have taken this urgent action to ensure that our troops are treated equally and fairly.
"Today we can reassure our service personnel that they will not be left hundreds of pounds out of pocket because of decisions taken by the Scottish Government."
The annual payments will consist of sums between £12 and £1,500 and the case for financial mitigation will be reviewed each year.
The Ministry of Defence will continue to review the situation and make decisions each tax year as to whether the difference between Scottish tax and tax elsewhere in the UK is sufficient to warrant financial mitigation.
The annual cost to the MoD for 2018/19 is expected to be £4 million.