CLAIMS that military stationed at Faslane, and elsewhere in Scotland, are being “spared higher taxes” by the Westminster government have been denied by their Scottish counterparts.
Former army major Maurice Corry, now a Conservative MSP for the west of Scotland region and chair of the Scottish Parliament's cross party group on armed forces and veterans, said measures announced by his party colleagues in London would “continue to alleviate higher taxes for military personnel in Scotland”.
But the Scottish Government insists that people in Scotland earning less than £27,243 a year – whether they are military personnel or not – will pay less income tax in 2020-21 than those in other parts of the UK.
The Ministry of Defence says an annual payment of between £12 and £2,200 – averaging £850 – will be made to all service personnel based in Scotland who earn more than £28,442 a year, regardless of where they are deployed or where their families live.
The payments had previously been announced every year, but the MoD now says they will be made on an ongoing basis without an annual review.
However, the MoD also says the payment to services personnel to cover the 2020-21 tax year will not be made until June 2021.
Mr Corry, who served in the armed forces for 38 years and who lives in Helensburgh, said: “Our armed forces deserve the utmost respect and we are all greatly indebted for their service.
"How unfair it was then that the SNP government imposed higher taxes on them through their unfair policies.
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“I hugely welcome the moves by the UK government and the Ministry of Defence for stepping into rectify this and ensure that our military personnel across Scotland will never again have to pay higher taxes.
“The SNP now need to see the errors of their ways and welcome this move that will give our military personnel a major boost in terms of morale as well as in their pocket.”
The UK government says the minimum payment will remain at £12, with the cap for the maximum amount reviewed each year in line with the Scottish Government’s annual announcements on tax rates and thresholds.
Baroness Goldie, the UK government's minister of state for defence, said: "We want to reassure our brave troops that they won’t be penalised for simply doing their duty by having to pay higher taxes in a certain part of the UK and they will be properly compensated in their pay slips each year."
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HM Naval Base Clyde is currently home to around 3,500 uniformed Royal Navy personnel, though that number will rise in the next few years as the base becomes home to the Royal Navy's entire submarine service.
A Scottish Government spokesperson said: “As a result of the Scottish Government’s progressive tax system, 56 per cent of all Scottish taxpayers – including many armed forces personnel – will pay less income tax than they would if they lived elsewhere in the UK in 2020-21.
“We are fully committed to supporting the armed forces community.
“Scotland continues to be an attractive place to live, work and do business, with armed forces families in Scotland able to access many services and benefits - for instance free prescriptions – that are not available elsewhere in the UK.”
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