Cost of Corporation Tax lower than expected
26 October 2015
After last week’s (w/b 19 October 2015) various announcements, there is the prospect that finally there may now be some ‘serious’ negotiations from the local parties involved in the political talks process.
As the current talks are aimed at a full implementation of the Stormont House agreement, the implementation of the NI Corporation Tax rate will have to be on the table if the talks are to succeed.
It is important that our key political and business influencers are aware of the possibility that the cost of reducing the NI corporation tax rate is less than previously portrayed and that the upfront cost could be ‘smoothed’ over the medium term.
Download a paper from GrowNI showing that the cost of lowering the Corporation Tax rate to 12.5% could be as low as £192m which could be spread out over a number of years bringing the annual cost to around £100m per year. A lower Corporation Rate will deliver FDI to Northern Ireland, which will in turn deliver well paid, long-term jobs across the province and supply chain benefits to our SMEs and micro businesses as well as the public finances.
According to GrowNI, 1 April 2017 is still achievable as a start date - so what are we waiting for?
Make sure your local political representatives are aware of these figures now.