Northern Ireland 'Tesco tax' begins in April

The tax on large retail stores in Northern Ireland, nick-named 'Tesco tax', has passed the final stage of approval in the assembly and will take effect from 1st April this year.

Sammy Wilson said the executive and assembly support for the bill "demonstrates a clear commitment from government to its responsibility to help stimulate the economy and to assist in any way possible to get Northern Ireland on the road to recovery." Some of the revenue from the levy will be used to help small businesses and to try to encourage occupancy of the many vacant retail units throughout Northern Ireland.

An additional £5million is expected to be generated by the tax, but large retailers have fiercely opposed the bill, saying it could restrict future investment and even result in redundancies. The rate of tax has been dropped by 5% to 15%, but even then, a very large store could be facing an additional tax bill of £250,000 a year. In all, 76 large retail businesses throughout Northern Ireland will be affected by the new levy, including the Ikea store in Belfast, and numerous tesco stores throughout the province.

If you own or run a business in Northern Ireland and require legal advice on any matter of commercial law, including the purchase, sale or leasing of commercial property, employment law including redundancy processes, or any other issue, contact Wilson Nesbitt solicitors in Belfast by calling 0800 840 9296.

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