Tax Rates in Scotland
The NFF is delighted that Defence Secretary Gavin Williamson has announced his intention to counter the Scottish Government’s income tax rise that affects thousands of Naval Service personnel in Scotland.
This issue was raised with us by many Naval Service families located in Scotland and we advocated on their behalf to the MOD and Government. We are pleased that they have listened.
On 21 February 2018, the Scottish Parliament ratified their income tax rates and thresholds applying to Scottish taxpayers. As a result those Service personnel earning more than £26,000 would pay more tax in comparison to their counterparts in the rest of the UK. Scotland plays a key role in the defence of the UK and its contribution is set to increase. Some 1,400 submariners will move to HM Naval Base Clyde by 2020, creating the new single home of the entire UK Submarine Service.
Since this article was published in March 2018, a new compensation scheme has been announced in Mid-July 2018 for those who are affected by the increase in Scottish tax rates. For further information on the scheme and our comment, visit here.