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Brexit – what doest mean for taxpayers?

23 of June, 2016 the day when EU became less one more country according to Brexit referendum. The Prime Minister of Great Britain said that in case of this referendum that he that he would resign before the next conference of the Conservative Party it was not entirely unexpected

Brexit

The Prime Minister of Great Britain said that in case of this referendum that he that he would resign before the next conference of the Conservative Party it was not entirely unexpected, in October 2016, but caused even more uncertainty about the next steps for the UK.

On the eve of the referendum, Cameron said that if Brexit vote, he will be obliged to immediately refer to the rules contained in Article 50 of the Treaty of Lisbon, as the United Kingdom upon its expiry will be separated from the European Union. Until then, the transnational corporations operating in the UK will continue to work within the framework of existing agreements.

These two years, and at any time, the United Kingdom may start negotiations on whether it can be part of the single market and the conditions that will be attached, as well as various other issues.

If, at the end of two years, an agreement has been reached to the satisfaction of the Government of the United Kingdom, and the remaining 27 members of the bloc are likely to have significant implications for the UK, in terms of taxation and in the economy as a whole.

Continued participation in the single market will include the payment of the fee to the Union, and the United Kingdom will need to follow the same rules of the EU single market and the EU to take decisions as before. Under this scenario, it does not change much in terms of taxation.

Failure to participate in the single market will mean that the British company will face new tariff and non-tariff barriers in the conduct of business in the EU, and vice versa. In addition, after the United Kingdom will cease to be a member, the UK participated in the EU trade deals will stop. This will mean that UK businesses face new hurdles – both tax and non – market non-EU countries until the new proposals are not consistent with the basic conditions of access to markets in the initial conditions of the WTO. In addition, in the UK they will no longer be required to comply within the Union Customs Code, which is being implemented in stages from now until 2020.

Author: Sergey Panov
managing partner Finance Business Service