Northern Ireland corporation tax in line for big cut

SPECULATION has emerged this morning that the government could allow Northern Ireland to charge a dramatically lower corporation tax rate to compete with the rate across the border in the Republic of 12.5%.

The government is already in the process of cutting corporation tax in the UK but articles in the press and on the BBC suggest that the chancellor may be ready to halve the rate in Northern Ireland.

The articles note that Stormont first minister Peter Robinson and deputy Martin McGuiness (pictured left) have both argued that Northern Ireland is losing out to the tax advantages across the border.

The paper quotes SDLP leader Margaret Ritchie saying Northern Ireland loses out when competing for direct foreign investors.

Press reports suggest however that Northern Ireland will not be permitted to go as low the Republic’s rate.

Such a move would see the government accepting different parts of the UK could charge different rates of tax.