Personnel paying higher rates of income tax set by the Scottish government will continue to receive cash from Westminster to ensure they are not disadvantaged.
The Ministry of Defence (MoD) confirmed that financial compensation payments introduced two years ago and reviewed annually will now be permanent for eligible troops.
Payments of between £12 and £2,200 will this year be made to those earning £28,443 or more.
The cap will be re-examined every 12 months.
Regular Armed Forces personnel who pay Scottish income tax are eligible for the money regardless of where in the world they are serving.
Soldier. (2020) Soldiers in Scotland ‘Not Out Of Pocket’. Soldier: Magazine of the British Army. August 2020, pp.11.