I
n the SNPs 600 odd page document on their vision for a future independent Scotland, it states their intention to take over responsibility for paying service pensions for veterans who remain living in Scotland. Now, this is only an intention, and presumably would be one of the many subjects that would have to be negotiated if the result is yes, it may not actually come to pass, however.....
This is quite an astute observation. Contractually speaking, veterans' pensions were accrued through their service to the UK Armed Forces, so so liability to pay that pension would remain with the UK Armed Forces - which, of course, an Independent Scotland would not be part of.
Why would they voluntarily undertake a finical obligation that wasn't theirs?
The questions remain: What would be the tax treatment by an Independent Scotland Government for Forces pensions paid to Scotland residents from a foreign country ? and would you be better off with a Sterling payment - given that no-one knows what the Scottish legal tender will be?