HMRC's draft guidance on the new Northern Ireland Corporation Tax regime paves the way for a lower rate of Corporation Tax than the rest of the UK.

The Corporation Tax (Northern Ireland) Act 2015 allows for devolution of power to the Northern Ireland Assembly to set a Northern Ireland rate of Corporation Tax to apply to certain trading income.

Changes to the Corporation Tax rate will not be legislated until the Northern Ireland Executive’s finances are on a sustainable footing.

The Autumn 2017 budget announced that Finance Bill 2017-18 would include a provision to amend CTA 2010 to ensure that the Northern Ireland Education Authority, which has provided state-funded education in Northern Ireland since 2015,  is exempt from Corporation Tax. This will bring Northern Ireland into line with England, Wales and Scotland in respect of the taxation of state education. The change introduced has taken effect from 1 April 2015.

Links

Northern Ireland Corporation Tax Rate (subscriber guide)

External links

Northern Ireland Corporation Tax regime: Draft guidance

Corporation Tax: exemption for Northern Ireland Education Authority