This year's UK pre-budget submission by Chartered Accountants Ireland focuses on promoting fairness and industry in Northern Ireland using the tax system.
The main points of the UK pre-budget submission are:
The Inheritance Tax Act 1984 should be amended to confirm that land let under conacre arrangements is a trading asset and qualifies for Agricultural Property Relief and Business Property Relief under Chapters 1 and II of Part V of the act.
The proposal to implement a civil penalties regime which would include publication of lists of firms which HMRC had found to be deficient is highly inappropriate and should not be pursued.
In order to encourage multinational inward investment we recommend the introduction of a new Technology Zone in Northern Ireland which would confer tax benefits such as a 12.5% rate of corporation tax and a special regime of capital allowances for companies operating within that zone.
In addition, to encourage more R&D in Northern Ireland a Northern Ireland specific R&D tax relief must be implemented. We propose an increase in the tax credit available to 200% of expenditure on R&D, coupled with a relaxation on the rules governing what constitutes R&D expenditure.