Scotland’s soldiers to be compensated for tax rises

Soldiers in Scotland to get compensation for tax rises

The Prime Minister told MPS that “mitigation payments” will be paid for the second year to Armed Forces personnel affected by higher tax bills in Scotland.

The announcement will benefit around 7,000 personnel. The Ministry of Defence (MOD) has increased the maximum payout from £1,500 to £2,200.

A divergence in rates means that income tax higher earners in Scotland pay more than they do in the rest of the UK. The announcement will see personnel paid between £12 and £2,200 in a retrospective single payment, covering the 2019-20 tax year, and it is expected to cost the MOD £6 million.

The issue was raised in the Commons at Prime Minister’s Questions by Scottish Conservative MP for Angus, Kirstene Hair.