Tax & VAT

How will the result of the EU referendum affect the UK’s tax system?

In the short term, the answer is ‘not at all’. For the moment, and probably for most of the next two years, the UK will continue as a member state of the EU, and EU rules will continue to have effect in the same way as at present.

 In the longer term, however, there may be significant tax changes, in addition to the alterations in customs duties on trade with the EU and third countries that are implicit in leaving the single market, and which have been debated at length during the referendum campaign.

The EU has an impact on UK tax rules in, broadly, four different ways.

The ‘exit’ decision will have no immediate impact on the UK tax system. Even when the formalities of withdrawal from the EU are completed, this will not be the signal for immediate major changes. Rather, the UK’s new status will give the tax system the freedom to develop over time, for good or ill, without some of the constraints that currently apply to it.

If you are uncertain about Brexit or would like further information from our team, please contact us here.