The work of the Institute in advocating for reduced rate of corporation tax for Northern Ireland, the latest on HMCR administered Covid-19 support schemes and the software developments for submitting a corporate interest restriction return all feature in this month’s UK tax developments.

Last month a delegation from Chartered Accountants Ireland met with the Independent Fiscal Commission for Northern Ireland and made the case that a lower corporation tax (“CT”) rate will attract FDI, create high-value jobs and drive the growth of local companies in the region.

The Institute has long advocated for a reduced rate of CT for Northern Ireland and has renewed this campaign on foot of a recent survey of members showing that two in three support the activation of devolved CT rate setting powers.

The Institute delegation told the Commission that a lower CT rate for NI would attract FDI which when combined with investment in lifelong learning and research capabilities, would lead to better jobs, higher wages and an improved quality of life for society in Northern Ireland.

In a submission to the Commission which formed the basis of the meeting, the Institute set out that a reduced rate of CT must be stable, and it should be guaranteed for at least ten years to have a sustaining economic impact in the region. The Institute also highlighted opportunities to renegotiate some aspects of a reduction to the block grant noting that Northern Ireland would need support from Westminster in the short-term to allow the economic gains of a reduced CT rate to take effect.

The Institute favours the devolution only of corporation tax rate setting powers for Northern Ireland, and not any other taxes, as a lever for enhancing Northern Ireland’s economic prosperity. The delegation also highlighted the need for a cohesive strategy to develop high-value skilled jobs as part of a lower CT rate offering for Northern Ireland.

The Fiscal Commission was established in March of this year to carry out a comprehensive review of the case for increasing fiscal powers available to the Northern Ireland Assembly. It will issue an interim report later in 2021 and plans to present its final report to the Finance Minister Conor Murphy in 2022.

The Institute delegation was led by President Paul Henry, Chair of the NI Tax Committee Alan Gourley, and Norah Collender and Crona Clohisey of the Institute’s Advocacy & Voice team. Chartered Accountants Ireland also issued a Press Release following the meeting with the Commission.