The Northern Ireland Assembly Department of Finance has published ‘Consultation on devolution of more fiscal powers’. This considers recommendations made by the Independent Fiscal Commission in May 2022.
A total of 23 recommendations were made by the Independent Fiscal Commission (IFC) concerning more fiscal devolution for Northern Ireland. These recommendations included:
- There is value in completing the devolution of Corporation Tax.
- The taxation of Dividends and Savings income should be devolved.
- Powers over the Income Tax base and administration should remain reserved.
- Stamp Duty Land Tax, Air Passenger Duty and Landfill Tax should be fully devolved.
The consultation now published seeks engagement on the IFC recommendations with a view to informing future policy considerations.
Responses can be made online or by email. The consultation closes at 18:00 on 29 November 2022.
1) Do you think the Executive should be provided with more fiscal powers like the Scottish and Welsh administrations have? What are your reasons for saying that?
2) Which taxes that the Commission recommends for devolution do you think that the Executive should seek to prioritise? Why do you say that?
3) What are your views regarding the timing for devolution of the taxes as recommended by the Commission?
4) What are your views as to how the Executive could best make use of any additional fiscal powers? Should the Executive be seeking such powers to raise or lower certain taxes? Where might the Executive use taxes as policy levers to change behaviours? And do you think increased local taxation should be used to better fund public services in line with local needs and circumstances?
5) What are your views on how any newly devolved fiscal powers might be administered?
6) Are there any other issues related to fiscal devolution, perhaps not covered in the Commission’s Final Report or where you have a different opinion, which in your view should be considered by the Executive?
Useful guides on this topic
Northern Ireland Corporation Tax
The Corporation Tax (Northern Ireland) Act 2015 allows for the devolution of Corporation Tax rate-setting powers to the Northern Ireland Assembly.
Northern Ireland Income Tax
What is the rate of Income Tax for Northern Ireland? What rate is Northern Irish Tax?
SDLT: Stamp Duty Land Tax, start here
What is SDLT? What are the SDLT rates? What is exempt from SDLT? What reliefs are available? When are returns due? When can you amend a return?
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
LBTT: Land and Buildings Transaction Tax
What is Land and Buildings Transaction Tax (LBTT)? What are the rules?