Brexit

What Changes Can We Expect?

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"Only Bulgaria, Romania and Greece will remain when the domino effect is set off."


Bulgarian Prime Minister Boyko Borisov

More information.......

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The UK is leaving the EU. What does this mean for UK tax? 

Well, most UK tax is based on domestic UK legislation and so does not rely upon EU legislation or, for the most part, EU court rulings.

VAT

However, the U.K.'s sales tax - VAT - is an EU tax and will need to be replaced. Leaving the EU will require a UK legal basis for VAT after exit.


Import / Export Duties

In principle, all transactions with other EU countries will be affected.

On exit being formalised, it is expected that goods bought into the UK from an EU country will be subject to import VAT and import duty. Goods exported from the UK to an EU country will be subject to import VAT and import duty in the EU country.

Goods moved from one EU country to another by a business registered for VAT in the UK is currently VAT-free for the UK business under a simplification known as triangulation. After exit, UK businesses can no longer expect to benefit from this EU process and may be required to register for VAT within the EU.

UPDATES

At the moment we are going through pre-discussion posturing in the UK and across the EU. We won’t report this stage of the process.

As changes are announced they will be reported below and tagged with a date so that you can track any process changes which affect you.

UPDATE : July 2, 2016

No substantive announcements so far.

UPDATE : July 12, 2016

No substantive announcements so far. With a change of government in progress, this seems reasonable.

In the meantime, there seems to be far more questions than answers. Pinsent Masons have written an excellent summary in Tax Journal magazine here.

UPDATE : July 26, 2016

No substantive announcements so far.

How does the UK’s exit from the EU affect your tax position? Ask us to update you as the changes are rolled out.

UPDATE : August 5, 2016

David Davis is the new Secretary of State for Exiting the European Union following Theresa May's appointment as Prime Minister.

A new Department for Exiting the European Union has been created.

The department is responsible for :

  1. Bulletthe policy work to support the UK’s negotiations to leave the European Union and to establish the future relationship between the EU and the UK

  2. Bulletworking very closely with the UK’s devolved administrations, Parliament, and a wide range of other interested parties on what the approach to those negotiations should be

  3. Bulletconducting the negotiations in support of the Prime Minister including supporting bilateral discussions on EU exit with other European countries

  4. Bulletleading and co-ordinating cross-government work to seize the opportunities and ensure a smooth process of exit on the best possible terms

UPDATE : September 23, 2016

No substantive announcements so far. Waiting for the government to trigger the start of negotiations.

UPDATE : November 20, 2016

No substantive announcements so far. None expected in Autumn Statement this week.