Northern Ireland Corporation publishes tax regime amendments

Dec 11, 2017

At the Autumn Budget 2017, the UK Government announced that it remains committed to the Northern Ireland Corporation Tax regime on the same terms as before stating, “once a restored Executive has demonstrated that its finances are on a sustainable footing”. Subject to this, the government will consider an announcement on implementing the regime in 2018-19.

The legislation implementing this regime was amended recently as a result of Schedule 7 of the Finance (No. 2) Act 2017. Broadly, these amendments enable SMEs who do not meet the SME NI employer test in the legislation to be able to avail of the regime for large companies if they have a Northern Ireland regional establishment (NIRE). Other minor amendments to the legislation were also made.

The NI Tax Committee recommended that where an SME does not meet the requirements of the NI employer test, it should be able to access the NI Corporation Tax regime via the large company test. This was a key recommendation in the Committee’s submission on the draft NI Corporation Tax rate legislation.

The Institute has now updated its NICT briefing note for these recent developments. This is available to download now. The previous version of the briefing note should therefore be disregarded.