North eyes corporation tax change

NORTHERN Ireland could soon have the power to set its own corporation tax rate which could result in firms leaving the Republic to locate in the North.

Ireland’s corporation tax rate of 12.5% is one of the lowest in Europe and a major selling point in attracting firms to locate here. Traditionally Northern Ireland maintained the same rate as Britain, which ranges from 21% to 28%.

However, the newly appointed Northern Ireland secretary, Owen Paterson, said yesterday that he is “very enthusiastic” about pursuing the idea of allowing Stormont to set its own corporation tax rate.