The financial mitigation measures will:
- Be payable to all regular personnel who pay Scottish Income Tax, regardless of where in the world they are serving. Mitigation payments of between £12 and £1,500 will be paid
- Cover personnel for tax year 2018/19 and will be a single payment made retrospectively
- The case for financial mitigation will be reviewed annually
The MOD will continue to review the situation each year and make decisions each tax year as to whether the difference between Scottish tax and tax elsewhere in the UK is sufficient to warrant financial mitigation. The annual cost to the MOD for Tax Year 2018/19 is expected to be £4 million.