Chartered Accountants Ireland commends Budget Announcement for Northern Ireland (22nd June 2010)

Chartered Accountants Ireland has reacted to today’s Budget announcements.

Chair of the organisation's Northern Ireland Taxation Committee Mr Eamonn Donaghy said:

"Of its nature, this was going to be a difficult Budget.  However we are pleased to see that some progressive tax elements were part of today’s Budget announcements, especially those of relevance to Northern Ireland.  These include the introduction of an Employer’s NIC exemption scheme for new businesses to help start up companies and the increase in the capital gains tax entrepreneurs relief which will encourage SME owners  to grow and ultimately sell their business as the effective capital gains rate will be only 10%.”

“The confirmation of a Government paper to examine mechanisms for changing the rate of corporation tax in this region has been on the cards for a while.  We advocate that this process needs to start as a matter of urgency. A  rate of corporation tax for this region similar to the rate in the Republic of Ireland would  in our view assist in boosting economic prosperity and rapid job growth by attracting high value added Foreign Direct Investment.  Chartered Accountants Ireland will be offering our assistance and expertise in this process to both local and national Government.

Ulster Society Chairman Richard Gardiner further commented:

“Chartered Accountants Ireland has consistently participated in the process of developing an economic strategy for Northern Ireland.  We note that the Government has responded to our call for commercially aligned tax measures as an important strand of this developing strategy and our members will continue to engage fully and constructively in the debate surrounding all of the issues which are raised by such a potential alignment”

“There are also a number of other UK wide measures which too will help the SME sector in Northern Ireland although many of these will not have an immediate impact due to a delayed start date.  Taken together the overall package can help in addressing the long held public/private sector imbalance in this region and we hope, that when combined with other measures, it will act as a catalyst for growth of the private sector in Northern Ireland."