You are here: Home »
Investing in Northern Ireland
» Taxation
Taxation
Overview The taxation system in Northern Ireland is that which applies throughout the UK. Although the current upper rate of corporation tax of 30% is one of the lowest in the industrialised world, there is a starting rate of zero and a small companies' rate of 19%. The bands are as follows: | Rates (financial year 2003-2004) | For taxable profits between: £ | Starting rate zero
Marginal relief
Small companies' rate 19%
Marginal relief
Main rate 30% | 0 - 10,000
10,001 - 50,000
50,001 - 300,000
300,001 - 1,500,000
1,500,001 or more
|
The main rate of corporation tax for 2003-2004 is 30%. Marginal Relief
Marginal relief will apply to a company with profits between £10,000 and £50,000. The fraction used to calculate this marginal relief will be 19/400. Marginal relief is also applicable to a company with profits between £300,000 and £1,500,000. The fraction used in this case to calculate marginal relief will be 11/400. Resident companies are taxed on all their profits - even those generated abroad which are not remitted to the UK. Non-resident companies are taxed only on UK branch or agency profits.
The trading losses of one UK company may be set against the profits of another UK company in a group consisting of a holding company and its 75% subsidiaries.
There are no local taxes on company profits in Northern Ireland. Within the UK Northern Ireland enjoys a unique position in that premises used for manufacturing are completely free from property taxes (rates).
The UK has double taxation agreements with some 100 countries, including the United States, Japan, all EU members and Free Trade Area countries.
A system of Value Added Tax operates in Northern Ireland. Generally, it applies only to companies with a turnover greater than £56,000. There is a single rate of 17.5% on most goods and services.
|
