Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment the Government has made of the effect of trading profits taxable at the Northern Ireland rate on UK tax revenues.
The effect on UK tax revenues of devolving corporation tax rate-setting powers will depend on the rate set by the Northern Ireland Executive.
Under the Stormont House Agreement, these powers will be commenced once a restored Northern Ireland Executive has demonstrated that its finances are on a sustainable footing.
The Northern Ireland Executive block grant will be reduced to reflect the tax revenues foregone by the UK Government as a result of both direct and behavioural effects.
The relevant Tax Information and Impact Notes can be found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/393521/TIIN_-_Corporation_Tax_-_devolution_of_rate-setting_power_to_Northern_Ireland.pdf