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What Impact Would A Low Corporation Tax Have On House Prices?

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http://www.bloomberg.com/news/2011-03-24/northern-ireland-consultation-on-corporation-tax-cut-begins.html

Northern Ireland Consultation on Corporation Tax Cut Begins

By Colm Heatley - Mar 24, 2011 12:36 PM GMT

The U.K. government published today a consultation paper that might allow Northern Ireland’s power- sharing executive to reduce the region’s corporation tax rate to 12.5 percent.

“It is estimated that the level of investment in Northern Ireland would be around 6 percent higher each year than it would have been in the base case, where the Northern Ireland corporation tax rate is not devolved and reduced to 12.5 percent,” according to the document, released at a press conference in Lisburn, Northern Ireland, today.

The consultation period lasts until June 24, after which the results will be presented to the U.K. government.

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Well I suppose if the net effect is 100,000 more jobs in NI and 100,000 less jobs in GB than there would otherwise have been, it puts a downwards pressure on GB houseprices. May or may not be detectable.

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http://www.bloomberg.com/news/2011-03-24/northern-ireland-consultation-on-corporation-tax-cut-begins.html

Northern Ireland Consultation on Corporation Tax Cut Begins

By Colm Heatley - Mar 24, 2011 12:36 PM GMT

The U.K. government published today a consultation paper that might allow Northern Ireland’s power- sharing executive to reduce the region’s corporation tax rate to 12.5 percent.

“It is estimated that the level of investment in Northern Ireland would be around 6 percent higher each year than it would have been in the base case, where the Northern Ireland corporation tax rate is not devolved and reduced to 12.5 percent,” according to the document, released at a press conference in Lisburn, Northern Ireland, today.

The consultation period lasts until June 24, after which the results will be presented to the U.K. government.

just imho

but the chances of our european masters allowing us a 12.5% rate are close to zero

rock on!

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http://www.bloomberg.com/news/2011-03-24/northern-ireland-consultation-on-corporation-tax-cut-begins.html

Northern Ireland Consultation on Corporation Tax Cut Begins

By Colm Heatley - Mar 24, 2011 12:36 PM GMT

The U.K. government published today a consultation paper that might allow Northern Ireland’s power- sharing executive to reduce the region’s corporation tax rate to 12.5 percent.

“It is estimated that the level of investment in Northern Ireland would be around 6 percent higher each year than it would have been in the base case, where the Northern Ireland corporation tax rate is not devolved and reduced to 12.5 percent,” according to the document, released at a press conference in Lisburn, Northern Ireland, today.

The consultation period lasts until June 24, after which the results will be presented to the U.K. government.

Imho for 5-10 years this move would have a fairly neutral effect due to the cut in the block grant that would pay for the cut. Long term it would greatly depend on the type of firms that could be attracted to NI and the level of salary they would pay.

It is very unlikely imo that firms relocating to NI for a lower Corp Tax would be willing to pay London salaries to staff here so I can't see house prices here ever being worth the same as properties in the South East of England ever again. ;)

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just imho

but the chances of our european masters allowing us a 12.5% rate are close to zero

rock on!

Actually its already been established that our European Masters can do diddily squat about it

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Not nearly as much as the £4 billion of cuts, the rating of vacant properties, the cost of living or the absence of Southern 'investors' in my opinion.

I won't be worrying about it.

What few new jobs may come with it will just replace the low paid call centre jobs which will, by that time, have been relocated to China, India, Korea etc.

And that's if everyone can agree on it - not least the EU and perhaps a new UK Govt, If this one implodes.

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just imho

but the chances of our european masters allowing us a 12.5% rate are close to zero

rock on!

You have a UK corporation tax of 12.5%. The English, Scottish and Welsh governments choose to have local corporation tax rates of an additional 12.5%, the North Sea oil supplementary tax rate goes up from 30% to 42.5%, and the Northern Ireland government has a local CT rate of 0%.

I'm pretty sure there is nothing the EU could do about that.

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Actually its already been established that our European Masters can do diddily squat about it

like to be more specific?

when did they relinquish their tax harmonisation policy?

just how long do you think our southern cuzs will be enjoying their present corp tax rate?

rock on!

Edited by R + R

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like to be more specific?

when did they relinquish their tax harmonisation policy?

just how long do you think our southern cuzs will be enjoying their present corp tax rate?

rock on!

The Eu tax harmonisation policy is still at the proposal stage, ie it doesnt actually exist yet!

So they can't really relinquish something they don't have yet can they?

Re our Southern Cuzs:

Dublin has refused an offer by the European Union to reduce the interest payments on its bailout loan by almost a fifth in exchange for abandoning Ireland’s competitive 12.5 per cent corporation tax rate. French President Nicolas Sarkozy demanded a raise in the tax rate in a move towards greater EU tax ‘harmonisation’ in return for a 1 per cent cut in the 5.8 per cent interest rate on the £73.5 billion debt. But new Irish Prime Minister Enda Kenny insisted on maintaining Ireland’s flagship tax policy at the Eurozone harmonisation pact meeting.

So if Europe are having to use these tactics to entice Dublin to raise their rates, then they can't really have a lot of power can they?

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The Eu tax harmonisation policy is still at the proposal stage, ie it doesnt actually exist yet!

So they can't really relinquish something they don't have yet can they?

Re our Southern Cuzs:

Dublin has refused an offer by the European Union to reduce the interest payments on its bailout loan by almost a fifth in exchange for abandoning Ireland’s competitive 12.5 per cent corporation tax rate. French President Nicolas Sarkozy demanded a raise in the tax rate in a move towards greater EU tax ‘harmonisation’ in return for a 1 per cent cut in the 5.8 per cent interest rate on the £73.5 billion debt. But new Irish Prime Minister Enda Kenny insisted on maintaining Ireland’s flagship tax policy at the Eurozone harmonisation pact meeting.

So if Europe are having to use these tactics to entice Dublin to raise their rates, then they can't really have a lot of power can they?

it is much more than a proposal

it is a goal of the euro stability pact!

as for enda

i think it will become increasingly clear who the puppet master is

stormbankers rule ok!

rock on!

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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