Chartered Accountants Ireland has reacted to today’s Spring Forecast by urging the UK Government to address the tax barriers that are hampering business growth. The Institute is highlighting the urgent need for UK business tax policy to be revamped so that economic growth is stimulated, the tax system is simplified, and the burden of tax on entrepreneurial investments is reduced.
These recommendations formed the basis of the Institute’s response to HM Treasury’s Call for Evidence on Tax Supports for Entrepreneurs which closed last week. Chartered Accountants Ireland is the largest professional body on the island of Ireland and represents over 5,500 members in Northern Ireland.
UK Tax Manager with Chartered Accountants Ireland, Leontia Doran said
“As expected, today’s Spring Forecast contained no tax policy changes, however the Government cannot stand still in harnessing the talents and skills of the entrepreneurs and small businesses that are the heartbeat of the UK economy.
“In recent years, entrepreneurs have seen the value of their business eroded with higher taxes and employment costs. This leaves less money available to invest back into those businesses for their growth mission. For those selling their business, higher exit taxes means that there is less in their pocket for them to reinvest in other businesses. This will be further compounded by tax rises due to take effect from next month, including the reduced benefit of key Inheritance Tax reliefs.
“The Government recently consulted on how it can better support those investing in high growth companies. We urge the Government to launch a wider review of how the UK tax system can truly deliver a strategic long-term plan for entrepreneurial growth and investment.”
Northern Ireland businesses excluded from improved finance options from April 2026
In the 2025 Autumn Budget, the UK Government announced a series of increases to take effect from April 2026 to several of the UK’s venture capital schemes that provide smaller companies with access to finance and which provide a range of beneficial tax reliefs to the equity investor making these riskier investments.
However, the draft legislation for these changes means that certain Northern Ireland companies will not be able to take advantage of the increased thresholds for these finance schemes.
Doran noted
“We are concerned that the regional impact of UK tax policy has been ignored when it comes to Northern Ireland. For EU State Aid reasons, the Finance Bill specifically excludes Northern Ireland companies who trade in goods or electricity from benefiting from the increased limits which will be available when seeking external finance.
“This divergence in UK tax policy places these companies at a competitive disadvantage compared to similar businesses across the rest of the UK for no reason other than their location. This further hampers their growth and ultimately that of the wider economy.
“The Government needs to begin discussions on this issue as soon as possible via the existing UK-EU structures that underpin the Windsor Framework. This will likely require an application for State Aid approval.”
Northern Ireland Corporation Tax rate reduction
Specific policy measures are still needed to unlock Northern Ireland’s economic potential and its dual market access. As part of this, in 2026 the Institute has continued its campaign for a reduced rate of corporation tax more closely aligned with that across the rest of the island.
Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said
"The Chancellor spoke today about economic growth for all parts of the UK. Reducing the corporation tax rate for NI would grow the NI economy and ultimately increase the overall tax take from businesses and employees by attracting higher value FDI, which would support the creation of better jobs and opportunities for all businesses and citizens. Ireland’s successful industrial strategy was not the result of a single policy decision and certainly did not start with a big leap. That vision persisted and grew over the long term. We believe that Northern Ireland now needs that same clarity of purpose — and we call on the UK Government to share and support that vision.
“In the longer term, the gains for Northern Ireland would set a real benchmark for what can be achieved with ambitious tax policies. This is something that we know our members want and which we continue to advocate for in 2026.”
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