The prospect of corporation tax rate-setting powers being devolved to the Northern Ireland Assembly has been diminished by a political crisis following the resignation of Martin McGuinness as deputy first minister over a botched renewal heat incentive scheme.
The Corporation Tax (Northern Ireland) Act 2015 permits the Northern Ireland Assembly to set the rate of corporation tax for profits of some trades and activities of Northern Ireland companies. But the power cannot be exercised until the U.K. Treasury is satisfied that the Northern Ireland Executive has demonstrated that its finances are on a sustainable footing. The Executive had committed to a Northern Ireland rate of 12.5 percent from April 2018.
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