The UK on January 31 released updated draft guidance detailing how Northern Ireland’s corporation tax regime will operate once corporation tax rate-setting power devolves to the Northern Ireland Assembly.
The Northern Ireland Assembly will have the power to set a special corporate tax rate to defined trading profits one year after the Northern Ireland Executive demonstrates its finances are on a sustainable footing.
It is expected that this corporate tax rate will be set at a low 12.5 percent rate to attract foregn investement and compete with the Republic of Ireland’s tax rate.
In the meantime, HM Revenue and Customs is drafting guidance to ensure the proper operation of the corprate tax scheme once it enters into force.
The guidance addresses basic definitions, such as what is a ‘Northern Ireland company’ and ‘qualifiying trade,’ and how the loss relief provisions will work.
HMRC said the draft guidance may be refined further before the devolution of the corporation tax rate-setting power Northern Ireland.
Nice and informative article. Thanks for sharing the information about corporation tax rates. I was looking for information regarding this and the article was a great help to me.