Possible tax move signals North may soon be more competitive

NORTHERN Ireland could soon be in a position to better challenge the Republic for foreign direct investment after the potential for lowering its rate of corporation tax was raised in yesterday’s emergency British budget.

The main British rate is currently 28% – more than double that of the Republic’s – but will gradually come down to 24% over the next three years. While no change to the North’s 30% rate for overseas companies has been granted as yet, the British Government is to publish a consultation paper into the matter in the autumn.

Such a measure for Northern Ireland has been welcomed by companies there. Brian Lavery, managing director of the Belfast office of property consultants, CB Richard Ellis, said it “ would enable us to compete more effectively with the Republic for investment and job creation”.