Final meeting on NI corporation tax powers

The saga over whether or not powers to deal with corporation tax will be devolved to Northern Ireland should come to a close this Thursday in the last meeting between ministers and Treasury officials.

Business leaders and politicians in Northern Ireland have been campaigning for some time now for the devolution of corporation tax powers to the Assembly. They believe that Northern Ireland is missing out on foreign investment as a result of being unable to compete against the much lower rate of corporation tax in the Irish Republic. Companies can benefit from a 12.5% rate of corporation tax across the border, compared to the 25% in effect in the UK.

The main hurdle is the issue of cost. The Treasury will insist on a reduction of the Westminster block grant to Northern Ireland, with estimates of a £400million loss in the budget each year, perhaps even doubling in a few years time.

If you manage or own a company operating in Northern Ireland and require commercial law advice on any issue, such as the purchase, sale or leasing of commercial property, business contracts, employment procedures and policies, or any other matter, contact one of the commercial law solicitors at Wilson Nesbitt in Belfast by calling 0800 840 9295.