Military personnel liable for Scottish income tax will this month receive extra money from the MoD, according to an announcement.

The Ministry of Defence say that over 7000 soldiers, sailors and airmen and women who were adversely affected by the Scottish Government’s tax hikes last year will receive extra remuneration in their pay slip at the end of this month.

“The payments total £4.1million with an average payment of £580. This is a one-off yearly payment, which is taxable, but with the net effect of raising the take-home pay of service personnel to the level set in the rest of the UK.

Last year the MoD announced that to counter tax hikes by the Scottish Government, the MoD would provide financial mitigation to ensure that thousands of personnel would not be negatively affected.”

Defence Secretary Penny Mordaunt said:

“Scotland plays a vital role in the defence of the UK, attracting thousands of personnel with the type of skills we want to retain in our military.

It is right that we do everything we can to look after our people and their families. This extra cash will help ensure that Scotland continues to be an attractive place to serve.”

The MoD say that the move came after concerns that income tax changes could result in Scotland becoming a less attractive place for military personnel to be posted. They also say that it will also help with recruitment and retention, particularly as many of those affected personnel in Scotland have specialist skills, such as aircraft and submarine engineers.

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More subsidies to Scotland…can we just have another referendum and get rid?

The artist formerly known as Los Pollos chicken

Don’t be a muppet , I’m a Scot proud to be so and fiercely British . You have a bad attitude towards your fellow Brits. We had a referendum and rejected the idea of leaving. Your attitude mirrors that of those crazy yellow nationalists.

Daniele Mandelli

Bravo Los Pollos.

Yep well said but I do fear the SNP are nagging for a second referendum after brexit will win so the polls suggest.

Daniele Mandelli

They have no majority in Parliament as far as I’m aware, and are a minority. They have been losing seats.

So no referendum.


Yep well if you leave out the scottish parliments involvement. I would be even more nervouse if Corbyn gets in but I cant see that happening.


Let Scotland have all the Scottish OIL money and oil tax then.


Oil is a finite and shrinking resource, and in 2014 snp’s post-indie budget told us they’re basing their future Scottish budgets on oil reaching $130 per barrel and rising, look what the price of oil is now? and a reminder to snp that oil will run out in the not too distant future? also ironic the snp is propped up by the also indie-supporting scotgreens, greens and the “it’s oor oil” snp using oil as Scotland’s major future budget contributor, see the hypocrisy/danger there? and don’t forget the snp’s recently declared climate emergency?! yet they’re still using/counting/relying on oil being… Read more »


This isn’t a subsidy to Scotland, it’s a subsidy to all armed forces personnel working in Scotland, wherever they come from… Scotland chose to raise its income tax rate for middle-higher earners to address the poverty gap that could not be addressed by the budget awarded from Westminster under the Barnett formula budget splitting formula. The rest of Scotland coughed up with barely a note of dissent… the Westminster govt though have said they wish to compensate personnel working up here as they will earn less than their colleagues in England, Wales and northern Ireland. Scotland, pays more income tax… Read more »