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08/01/2015
Corporation Tax Bill Published
Legislation which could allow Northern Ireland to set its own rate of corporation tax has been published.
The Corporation Tax (Northern Ireland) Bill would allow the region's tax powers to be devolved to Stormont from April 2017.
Currently, businesses in NI pay 21% in corporation tax, compared to 12.5% in the Republic of Ireland. If the rate was lowered in line with the latter rate, it has been said that some 34,000 businesses in Northern Ireland would stand to benefit, including 26,500 SMEs.
Welcoming the publication of the Bill, Theresa Villiers, Secretary of State for Northern Ireland, said: "I am delighted the Government has introduced this important Bill today, as part of its implementation of the Stormont House Agreement.
"There is strong support for this change across all five of the parties in the Northern Ireland Executive and the business community who believe it would provide a major incentive for domestic businesses to invest further in Northern Ireland and significantly increase foreign direct investment.
"Given the land border shared with a lower corporation tax jurisdiction, this measure has the potential to create thousands of new jobs and stimulate crucial growth in Northern Ireland's private sector, leading to a stronger, re-balanced economy.
"In the light of an economy that for many years has been over-dependent on the public sector, allowing the Assembly to set its own rate for corporation tax offers the prospect of a transformative change in Northern Ireland."
George Osborne, Chancellor of the Exchequer, added: "As I've said over a number of years, there is a strong case for devolving a corporation tax rate-setting power to Northern Ireland.
"Today we recognise this by publishing the law to let this happen. This will give the Northern Ireland Executive greater power to rebalance the economy towards a stronger private sector, boosting employment and growth.
"We want to work with the NI Executive to ensure that Northern Ireland will attract investment and become more competitive, boosting the entire UK economy."
The government has said it aims for the legislation to be in place before May's General Election.
(JP)
The Corporation Tax (Northern Ireland) Bill would allow the region's tax powers to be devolved to Stormont from April 2017.
Currently, businesses in NI pay 21% in corporation tax, compared to 12.5% in the Republic of Ireland. If the rate was lowered in line with the latter rate, it has been said that some 34,000 businesses in Northern Ireland would stand to benefit, including 26,500 SMEs.
Welcoming the publication of the Bill, Theresa Villiers, Secretary of State for Northern Ireland, said: "I am delighted the Government has introduced this important Bill today, as part of its implementation of the Stormont House Agreement.
"There is strong support for this change across all five of the parties in the Northern Ireland Executive and the business community who believe it would provide a major incentive for domestic businesses to invest further in Northern Ireland and significantly increase foreign direct investment.
"Given the land border shared with a lower corporation tax jurisdiction, this measure has the potential to create thousands of new jobs and stimulate crucial growth in Northern Ireland's private sector, leading to a stronger, re-balanced economy.
"In the light of an economy that for many years has been over-dependent on the public sector, allowing the Assembly to set its own rate for corporation tax offers the prospect of a transformative change in Northern Ireland."
George Osborne, Chancellor of the Exchequer, added: "As I've said over a number of years, there is a strong case for devolving a corporation tax rate-setting power to Northern Ireland.
"Today we recognise this by publishing the law to let this happen. This will give the Northern Ireland Executive greater power to rebalance the economy towards a stronger private sector, boosting employment and growth.
"We want to work with the NI Executive to ensure that Northern Ireland will attract investment and become more competitive, boosting the entire UK economy."
The government has said it aims for the legislation to be in place before May's General Election.
(JP)
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Northern Ireland WeatherToday:Mostly dry south and east, patchy light rain west and north through much of the day. A band of heavier rain crosses central and northern parts in the morning Maximum temperature 13 °C.Tonight:Dry in the southeast at first otherwise widespread light rain or drizzle for most, turning to clear spells and a few showers towards morning. Minimum temperature 5 °C.
