Leading through change through the UK tax lens
In this article, Eunan Ferguson, the new Chair of the Institute’s Northern Ireland Tax Committee, discusses some of his priorities for enhancing tax policy in Northern Ireland.
Introduction
In December 2025 I had the honour of taking up the role of Chair of the Institute’s Northern Ireland Tax Committee when its previous Chair, Janette Burns, stepped down. This has also involved me stepping into the Joint Chair’s position, shared with Enda Faughnan, of the Institute’s special joint working sub-group on cross-border and remote/hybrid working which was established in September 2024.
Firstly, I wish to extend my public thanks to Janette for her dedication and expertise during her tenure as not just NITC Chair, but also as a Committee member for several years before that.
Leading through change through the UK tax lens
The current Institute President Pamela McCreedy, when writing in Accountancy Ireland last June, talked about how her year-long tenure came at a time of transformation for the profession and discussed the role that Chartered Accountants have as leaders through this change. Tax work is no different. As a long standing member of the NI Tax Committee I am proud to be taking on this role at a time of continued change and transformation for the UK tax regime.
The breadth of work that the Committee is involved in, which will continue under my tenure, is striking. From liaising with HMRC at the highest level across the various stakeholder forums, delivering evidence to the House of Lords, campaigning to devolve corporation tax to the NI Assembly, and promoting tax simplification – the list is endless.
In recent years the Committee’s work has also involved helping businesses deal with EU exit related issues, and whilst it is arguable that much of this has bedded down since the end of the EU transition period in December 2020, challenges still remain several years on. This will remain a key area of focus as businesses in Northern Ireland navigate the complexities (and indeed opportunities) of dual market access, whilst at the same time grappling with two different VAT regimes for goods and services.
In 2025 alone, UK tax policy issues featured in thirteen formal responses to UK Government departments, mainly HMRC and HM Treasury, and resulted in numerous lobbying successes, all of which the Institute reports in its weekly Chartered Accountants Tax Newsletter. However, the Committee is particularly proud that, in conjunction with other stakeholders, its evidence was instrumental in lobbying the UK Government to increase the original £1 million 100 percent allowance for APR and BPR to £2.5 million and enable this to be transferable between spouses.
In the remainder of this article I highlight two ongoing workstreams that are particularly close to my heart both as a citizen of Northern Ireland and given my more than 20 years’ experience as a tax professional.
Cross-border and remote/hybrid working on the island of Ireland
On 23 April a delegation from the Institute’s tax team, including myself, met in Belfast with Northern Ireland’s Minister of Finance John O’Dowd MLA, to discuss the ongoing barriers to the all-island labour market as result of the tax complexities facing businesses and frontier/cross-border workers.
In February this year, the Institute wrote to Minister O’Dowd requesting a meeting to discuss solutions for those employers and workers affected by the byzantine tax administration and compliance requirements in the UK and Ireland which have been exacerbated by hybrid and remote working in recent years. In 2025 we also wrote to HMRC’s CEO JP Marks on this issue, which also featured in the Institute’s pre-budget submission ahead of the 2025 Autumn Budget.
The recent meeting with the Minister and his officials was an engaging and productive discussion which focused on the three key issues highlighted in our initial letter whilst also discussing solutions. We will continue to engage with the Minister and his team as this important work progresses.
Also in April we met with officials from the Department of Finance in Dublin to discuss the same issues following on from a similar letter to Tánaiste Simon Harris. This was a similarly engaging meeting, the outcome from which is that our engagement with the Irish Government will also continue as Irish Department of Finance officials progress this work on their end.
These meetings follow the joint statement issued by Prime Minister Sir Keir Starmer and An Taoiseach Micheál Martin following the UK-Ireland Summit in Cork in March. In that statement, the leaders jointly said that they “welcome agreement to engage on reaching a decision in principle this year on a bilateral Ireland-UK approach to address concerns arising from hybrid cross-border working and to consider other aspects of the UK-Ireland Double Taxation Convention which may require updating.”
The Institute had previously recommended in its 2025 UK pre-budget submission that a bilateral agreement between the UK and Ireland be considered as a policy solution which would significantly reduce the substantial complexity faced by employers and employees affected by these issues. It is encouraging to see this being taken on board by both governments.
As a result of these recent meetings, it is clear that Westminster and Dublin are taking a joint approach to this matter which will naturally also require engagement and input from ministers and officials in Stormont.
Ultimately, this work may also open up opportunities for leaders in Dublin, Belfast, and London to consider broader measures which would support the economic development of Northern Ireland beyond the all-island labour market, such as a lower corporation tax rate for the region.
Northern Ireland corporation tax
We already know from past experience that Northern Ireland’s business community is highly adaptable and resilient. This year is shaping up to be another year when this will be put to the test. However the economy here needs more than a strong business community. That is where a lower rate of corporation tax would play an important part.
Member surveys in recent years have shown an ongoing and high level of support for a lower corporation tax rate. The Institute’s position on this, as set out in its 2025 paper, ‘Enhancing Our Competitiveness’, is that Northern Ireland needs a consistent, coherent and long-term industrial policy that attracts investment, creates secure well-paid jobs and fosters entrepreneurialism and innovation. Reducing the corporate tax rate would be a key part of that industrial policy, and one which would entice investment into the region and encourage innovative businesses to start, grow, and expand. Northern Ireland also needs to better leverage its unique post-Brexit dual market access.
A recent member’s survey shows stronger support than ever for a lower corporation tax rate. However this also needs to be founded on a bedrock of public sector reform and stronger economic leadership.
A thriving economy is built on confidence, competitiveness, and long-term vision. Northern Ireland has a unique opportunity to reshape its economic landscape by implementing a more competitive rate of corporation tax. This is not viewed as an isolated policy shift, but as part of a broader strategy to enhance the region’s position in the global marketplace.
We recognise that the path to a lower corporation tax rate will not be without its challenges, including the cost to the block grant. However the time has now come for policymakers to re-examine the merits of instituting a lower, more competitive rate of corporation tax in Northern Ireland. The Northern Ireland Tax Committee stands by ready to walk and help on this path.
Conclusion
As I head towards the six month mark in June from taking up my role as NITC Chair, I want to encourage members to engage with the Committee’s work. It affects us all day and daily.
The Committee is very ably supported by trusted volunteers and very knowledgeable tax professionals from the Institute’s tax team, who combined, have many years of experience in tax in both industry and practices of all sizes. But we need to hear from you to take our work forward.
Tell us your views, let us know about the challenges you are facing in navigating the UK tax regime, and your ideas for solutions. Lend your voice to our remit of leading through change via the UK tax lens. Email tax@charteredaccountants.ie to participate in shaping this work.
Eunan Ferguson is a Director with KPMG Ireland and is based in Belfast.