Asked by: Lord Caine (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans, if any, they have to devolve responsibility for corporation tax to the Northern Ireland Executive; what assessment they have made of the expected change in the level of revenue generated from corporation tax from any such transfer of responsibility; and, in particular, whether Her Majesty’s Government would be able to offset any shortfall in revenue resulting from such a transfer of responsibility.
Answered by Lord Agnew of Oulton
The Stormont House Agreement between the UK Government and the Northern Ireland Executive agreed, in principle, for the power to set the rate of corporation tax in Northern Ireland on certain trading profits to be devolved to the Northern Ireland Assembly.
It was agreed that the Executive would need to demonstrate that its finances were on a sustainable footing before devolution of this power could be undertaken, and that the Executive’s block grant would need to be adjusted to reflect the corporation tax revenues foregone if the devolved power were exercised.