Question to the Ministry of Defence:

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.

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.