The payments are due to military personnel in Scotland paying more tax than their colleagues based elsewhere in the UK.

Deidre Brock, Shadow SNP Spokesperson for Devolved Government Relations, asked in a written question:

“To ask the Secretary of State for Defence, how many financial mitigation payments have been made to MoD personnel based in Scotland in relation to the Scottish rate of income tax; and at what salary level those payments began.”

Tobias Ellwood, the Parliamentary Under-Secretary of State for Defence, answered:

“No financial mitigation payments have yet been made to Ministry of Defence personnel resident in Scotland in relation to higher rates of Scottish income tax. Mitigation payments for Tax Year 2018-19 will be made in June 2019 to those with taxable earnings of £27,200 or more. Mitigation payments for Tax Year 2019-20 will be made in June 2020 to those with taxable earnings of £28,193 or more.

It is estimated that up to 8,000 payments will be made in June 2019 and up to 7,000 payments in June 2020.”

Since April last year 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.”

The financial mitigation measures will:

  • Be payable to all regular personnel who pay Scottish Income Tax, regardless of where in the world they are serving. Mitigation payments of between £12 and £1,500 will be paid.
  • Cover personnel for tax year 2018/19 and will be a single payment made retrospectively
  • The case for financial mitigation will be reviewed annually

According to the BBC, people across Scotland who earn more than £24,000 pay 21% under the new system. Higher (£43,431 – £150,000) and top rates (earnings more than £150,000), have been increased to 41% and 46% (40% and 45% across the rest of the UK).

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Shouldn’t Scotland get a reduction in funding to pay for this? I mean it is a little unfair to expect the rest of the UK to pay for it given that the tax is only of benefit to Scotland…


I think a date needs to set for scrapping the Barnett formula all together.


Surely as part of the UK it should have been the same for all component parts, not less for the larger part and more for the smaller?


It is welfare for nations rather than individuals, a permanant hamock not a short term safety net. Unaffordable, unsustainable = unacceptable. The UK needs to be fighting fit for the economic challenges of the (near) future and trim the fat, tighten our belt.


So British forces personnel in Scotland get a tax mitigation/rebate ‘and’ get Better Scottish services like free university tuition, free prescriptions and eye tests?

How is that fair when other areas of the public sector like civil servants have had to do with no real terms increases for years?

Captain P Wash

Ha, You should try working in the Private sector.

And Self Employed people have taken no Pay Rise for years. Just been targets for Government Taxation and Revenue.

None of my Heart actually Bleeds for the strife your Public Sector friends are expieriencing truth be known.

They like Us, choose to take this Path. We choose It to try to Better our Life.


Oh god here he goes again, the sad troll who gets no attention at home or at the benefits office. Better Scottish services? Wow another comment with no subject matter experience or knowledge, it’s a common trait isn’t it son, never lived in Scotland have you. Gary Glitter time son……

The SNP government argument is a dodgy one as all those extra’s were all ready costed and available before the Tax increase. But hey, if the treasury feels its got cash to give away…..

David E Flandry

Remember that to all governments, their money is theirs and your money is theirs.