Skip to main content

Corporation Tax

Volume 448: debated on Monday 3 July 2006

To ask the Chancellor of the Exchequer what plans he has to reduce corporation tax in Northern Ireland; and if he will make a statement. (81820)

The corporation tax regime is a UK-wide system and introducing different rates in one part of the UK could distort competition.

Many companies trade in different regions of the UK. It would not be easy to determine the proportion of their profits liable at a “devolved” rate. In addition, such a measure could create opportunities for some companies to manipulate the rules in order to benefit from the lower rate. That might well result in a system that would place a significant administrative burden on both businesses and the Government.