8,000 military personnel in Scotland are to receive back pay to compensate for income tax rise in Scotland.
We understand that this rise sees them pay more tax than their colleagues based elsewhere in the UK.
Since April in Scotland, anyone earning more than around £26,000 in Scotland has paid more income tax. The change meant around 70% of personnel based in Scotland were facing higher tax bills.
Defence Secretary Gavin Williamson 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.”
Scottish Government finance secretary Derek Mackay said:
“We are fully committed to supporting the armed forces community and armed forces families in Scotland benefit from services not available elsewhere in the UK, such as free school meals, prescriptions and eye tests, and tuition fee and living cost support in higher education when they are ordinarily resident.
It is disappointing that, despite making an offer to discuss the differential taxation of military personnel, the Scottish government has not been consulted on the proposal announced by the MoD.”