Tuesday, 20 January 2015

Corporation tax rate setting powers announced for Northern Ireland Assembly

On January 8, 2014, the Secretary of State for Northern Ireland announced the publication of the Corporation Tax Bill.  The Bill is part of the process for devolving additional powers from the central UK parliament to the North Ireland Assembly and to help stimulate further investment in Northern Ireland.  As long as the Bill is granted Royal Assent before the UK General Election in May 2015, the devolution of Corporation Tax rate setting powers to the Northern Ireland Assembly will occur effective April 1, 2017.
While the Northern Ireland Assembly will ultimately decide on the corporation tax rate, it is generally accepted that the rate will be reduced, either directly or in stages, to at least 12.5%.  This would create parity with the rate prevailing in the Republic of Ireland.
Source: PwC