Chartered Accountants Ireland Calls for Bold Action on Corporation Tax to Secure Northern Ireland’s Economic Future...
Chartered Accountants Ireland has today launched a landmark policy paper, Enhancing Our Competitiveness, advocating for the urgent introduction of a reduced rate of corporation tax in Northern Ireland to drive inward investment, economic growth, and job creation.
The report, published by the largest professional body on the island of Ireland, is being unveiled at a special event in Belfast attended by senior business leaders, policymakers, and members of the accountancy profession.
Amid global economic turbulence and increasing competition for foreign direct investment (FDI), Northern Ireland holds a unique position with dual access to both the UK and EU markets. However, Chartered Accountants Ireland warns that this perceived advantage is being undermined by a corporation tax rate that is currently double that of the Republic of Ireland.
Pamela McCreedy, President of Chartered Accountants Ireland said:
“In a turbulent trading environment, Northern Ireland is in the enviable position of benefiting from unfettered access to both the UK and EU markets. No other economy can boast this. If the enormous potential that dual market access offers is to be fully realised, then it must be supported by complementary industrial policies that further boost the region’s attractiveness, including a more competitive rate of corporation tax.
“Our message is clear: Northern Ireland cannot afford to stand still. A competitive corporation tax rate is essential to bolster our investment proposition and unlock the full potential of Northern Ireland’s dual-market access.
“This report calls on our policymakers to take bold action. By embracing fiscal reforms that align Northern Ireland’s tax policy with its economic ambitions, we can foster an environment that attracts investment, nurtures entrepreneurship, and secures a prosperous future for generations to come.”
The policy paper outlines a clear case for reform:
• 60% of Chartered Accountants in Northern Ireland support devolving corporation tax powers to the Northern Ireland Executive.
• A reduced rate would make the region more attractive to investors, help create high-value jobs, and level the playing field with neighbouring jurisdictions.
• Lessons from the Republic of Ireland’s long-standing 12.5% rate demonstrate the potential for sustained revenue growth over time.
• Research published by the Economic and Social Research Institute in Ireland found that if a 15% minimum corporation tax rate were introduced in NI, this “would increase the number of high-value FDI going to Northern Ireland by 7.5% per annum.”
• In terms of implementing the rate without impacting Northern Ireland’s block grant, the paper suggests it could be feasible to replace any reduction in the block grant brought about by the lower rate with a special low-interest loan from the UK Government. The ultimate ambition behind the launch of a reduced rate of corporation tax is that it will become self-funding in the medium to long term.
The paper proposes implementing a Northern Ireland-specific rate—potentially 12.5%—with protections for larger companies subject to the OECD’s 15% minimum. Crucially, it recommends securing a long-term guarantee on the rate for at least twenty years to provide certainty to investors.
To safeguard public finances, the paper calls for negotiations with HM Treasury to mitigate any short-term impact on the block grant through measures such as a special low-interest loan. This approach has been backed by the Independent Fiscal Commission and leading tax experts across the region.
Zara Duffy, Head of Northern Ireland at Chartered Accountants Ireland said:
“Reducing the corporation tax rate is the single most transformative fiscal lever available to us. Tax policy is more than just a fiscal lever—it is a statement of intent. A reduced corporation tax rate would send a strong signal to investors, entrepreneurs, and businesses that Northern Ireland is serious about growth, innovation, and job creation.”
Chartered Accountants Ireland is calling on the Northern Ireland Executive to move swiftly - initiating a public consultation, revisiting the 2016 HMRC Memorandum of Understanding, and working in partnership with Westminster to implement the policy.
The Corporation Tax (Northern Ireland) Bill received Royal Assent on 26 March 2015. It enabled the transfer of corporation tax rate setting powers to the Northern Ireland Assembly, subject to implementation of key measures to deliver sustainable finances. As yet, it is a measure to boost the Northern Ireland economy which remains untried.
Chartered Accountants Ireland has spearheaded the campaign for a devolved Corporation Tax rate for Northern Ireland for many years, having first campaigned for the change as far back as 2004. The Institute has made countless submissions to various government inquiries, review groups and to HMRC and presented evidence to the House of Commons’ Northern Ireland Affairs Committee in Westminster.
As Northern Ireland faces mounting pressure to rejuvenate its economic model and compete more effectively on the international stage, Chartered Accountants Ireland along with many in the business community, feels strongly that the time is right to take a fresh look at reducing the Corporation Tax rate in Northern Ireland.
Enhancing Our Competitiveness can be viewed HERE
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