Invest NI: Cutting corporation tax to 12.5% better late than never

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Invest NI boss Alastair Hamilton says he’s happy corporation tax is to be reduced to 12.5 per cent in Northern Ireland even if he now has to wait an extra year for that to happen.

“Northern Ireland is already the most successful region in the UK for Inward Investment, on a per capita basis, based on our ability to attract cost centre, service based projects,” he said, following the publication of Stormont House Mk II on Tuesday.

“A reduced rate of Corporation Tax will significantly add to the attractiveness of Northern Ireland as an investment location for existing and potential new investors and bring benefits to our local business base. It will open doors for us to be able to compete for, and seek to attract, new operations, which are tax sensitive.

“Securing inward investment projects often takes two to three years from initial engagement to confirmed letters of offer. Now that we have an agreed rate and date will be able to proactively begin engaging with potential new investors who may have profit centre opportunities. Today’s announcement will also provide a welcome boost to local, profitable businesses which will have additional finance to invest in their future growth.

“The addition of a reduced Corporation Tax to our investment proposition has the potential to make Northern Ireland the most attractive location in Western Europe for new FDI, based on a combination of tax, talent and value,” he said.