In a recent interview in the Irish News, the Chairman of the Institute’s Northern Ireland Tax Committee, Paddy Harty of PKF-FPM, highlighted the need to ensure that efforts that have gone into delivering corporation tax devolution are not lost.

Mr Harty explained that the Northern Ireland rate (12.5%) and date (1 April 2018) were announced as a key element of the 2015 Fresh Start Agreement. However it came subject to terms and conditions. There are clearly defined rate-setting arrangements needed to “switch on” the Northern Ireland corporation tax rate. This requires Treasury regulations to be legislated for and that aspect is subject to some very specific conditions.

As set out in the November 2015 Fresh Start agreement, this requires the continued commitment of the NI Executive to “take all the actions necessary to demonstrate that its finances are on a sustainable footing for the long term including successfully implementing measures in the Stormont House Agreement, this Agreement and subsequent reform measures”. Northern Ireland cannot “demonstrate that its finances are on a sustainable footing” without an Executive in place.