UK's proposed corporation tax cut will be blow to Northern Ireland (& the Republic)

[Ghost Dog]

The UK is set to dramatically slash corporation tax rates to woo businesses deterred by Brexit — just as Northern Ireland is preparing to cut its own rate.

While the move places the UK in direct competition with the Republic for vital foreign direct investment, it will scupper Northern Ireland’s chances of attracting investment after the rate here falls.

Chancellor George Osborne has revealed plans to aggressively cut the tax to less than 15% as he outlined his plan to galvanise the British economy.

This would take Great Britain close to the 12.5% corporation tax rate which has been a cornerstone of the Republic’s economy and helped attract major employers including Apple, Pfizer and Google...

http://m.belfasttelegraph.co.uk/business/news/uks-proposed-corporation-tax-cut-will-be-blow-to-northern-ireland-34854155.html

[tonyt53]

1. They are trying to copy Ireland. That hasn't worked out so well in the long term.

[Ghost Dog]

2. The UK is pitching itself as a tax haven...

Gary McDonald Business Editor
04 July, 2016 11:47
BRITISH Chancellor George Osborne's plan to build a “super competitive UK economy” with low business taxes and a global focus may have done one of two things for Northern Ireland.

His proposal to slash the UK rate of corporation tax by 5 per cent to 15 per cent may have completely scuppered the Stormont Executive's plans to match the Irish rate of 12.5 per cent in a bid to complete for foreign direct investment. Or could it be that it could start a push to have the reduced Northern Ireland rate implemented sooner rather than later - and certainly earlier than the proposed start date of April 2018? Is that even a remote possibility? Probably not within the tight time frame...

... What Osborne has done, though, is fuel the notion that the UK is pitching itself as a tax haven as it enters into trade negotiations with Europe, and that effectively puts the north's lights out as regards going it alone.

For more than 20 years the north fought tooth and nail to secure the right to set its own business tax, claiming that sharing a land mass and border with a low corporation tax region could reap an economic bonanza...

http://www.irishnews.com/business/2016/07/04/news/analysis-has-osborne-just-scuppered-north-s-long-sought-after-corporation-tax-plans--590566/