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Written question asked by Scott Arthur (Labour) on Monday, 24 March 2025, in the House of Commons. It was due for an answer on Wednesday, 26 March 2025. It was answered by Al Carns (Labour) on Monday, 31 March 2025 on behalf of the Ministry of Defence.

Income Tax: Scotland

Question

To ask the Secretary of State for Defence, is he will make an estimate of the cost to the public purse of the Scottish Income Tax Mitigation scheme in each financial year between 2018-19 and 2024-25.

Answer

The Ministry of Defence’s Scottish income tax mitigation payment scheme is unique within the public sector and has been agreed by wider Government for use only where Service personnel are compelled to serve at one location over another. The scheme aims to support retention of those serving in Scotland by removing the disadvantage of higher taxes applying on those required to serve there who might not choose to do so if not compelled.

The estimated cost to the public purse of the Scottish Income Tax Mitigation scheme is set out below. Figures commence from Financial Year 2019-20, covering payments for those affected in Tax Year 2018-19.

Financial Year

Estimated Cost (£million)

2019-20

4.69

2020-21

7.36

2021-22

8.11

2022-23

8.27

2023-24

9.31

2024-25

12.74

Secondary information

Type
Written question
Reference
40760
Session
2024-26
Subjects
Income tax Scotland
Contains statistics
Yes
Link
View this Written question on www.parliament.uk