Economic Impact of Corporation Tax
Date published:
The UK Government has now legislated to allow Northern Ireland to set its own rate of Corporation Tax, and the NI Executive has committed to implementing a 12.5% rate from April 2018. DETI commissioned the Ulster University Economic Policy Centre to estimate the net economic impact of this move up to 2033.
This study assesses the net economic impact, in areas such as output, jobs and productivity, of a 12.5% rate of Corporation Tax in Northern Ireland from 2018. Two reports, one providing and high level summary and another more in-depth technical report, have been produced. The analysis is based upon the UK Government’s Corporation Tax policy published in Budget 2015 and expenditure plans published in the 2015 Autumn Statement. Following completion of the study, the UK Budget 2016 announced a further reduction in the UK Corporation Tax rate to from 18% to 17% in 2020. It is planned that a revised summary paper will be issued later in 2016 to reflect this lower UK rate.