Praxis des Internationalen Steuerrechts 2016/2017

II. Brexit: Impact on International Tax Planning, a UK perspective (Herrington)

1. Brexit

• What has happened so far

• What happens next: the different alternatives

• How EU law affects UK tax law at the moment

• How that might change

1.1 The story so far…

• National referendum held on 23 June on the question “Should the United Kingdom remain a member of the European Union or leave the European Union?”

• “Leave” won 51.9% to 48.1%

  • Majorities for “remain” in Scotland, Northern Ireland, London and Gibraltar

• The referendum is not legally binding: but is in practical political terms

1.2 Brexit – overview

• David Cameron stepped down the next day

• Theresa May is the new PM

  • Has decided to invoke Article 50 of the Lisbon Treaty “no later than March 2017”S. 24

• Once Article 50 is invoked, this triggers a minimum 2 year negotiating period for UK exit from EU

  • High Court challenge to triggering Article 50

  • Parliament likely to get a vote on whether the terms of the proposed exit are acceptable

• In the meantime, nothing much is likely to change from a UK legal perspective

  • EU laws continue to apply

  • Government unlikely to concern itself with unwinding changes to domestic l...