Minister credits MPs with military tax plan

Defence Secretary Gavin Williamson said a campaign by Scottish Conservative MPs led to the government’s £4 million plan to compensate military personnel in Scotland affected by income tax rises.

The minister said the plans, following income tax changes introduced by the Scottish Government which came into force in April, right an “injustice”.

The Ministry of Defence plans to compensate around 8,000 servicemen and women “negatively affected” by the tax changes with annual mitigation payments of between £12 and £1,500.

“Don’t have a choice where they are stationed”

This means all British troops will pay the same income tax, regardless of where they are stationed.

Speaking in Glasgow, Mr Williamson said: “The Nat tax which is being imposed by the SNP is affecting 70% of service personnel in Scotland. It’s right, and down to the campaigning of Scottish Conservative MPs, that we’ve addressed that injustice.”

Questioned if other UK Government personnel paying more tax in Scotland due to the changes will also be compensated, Mr Williamson said: “In the MoD service personnel don’t have a choice where they are stationed.

“That’s why we decided it was very important to act.”

The Scottish Government said the armed forces community in Scotland benefits from a range of services not available elsewhere in the UK, such as free school meals and prescriptions.

The Scottish changes increased the higher and top rate of income tax to 41p and 46p respectively.