How will the EU Referendum effect the UK tax environment?
As the UK awaits the result of the EU referendum there are many uncertainties in the minds of British citizens.
What is certain however, is that leaving the EU has the potential to change the tax environment in the UK.
The UK tax implications of Brexit are difficult to predict, not least because the terms of any future exit are, as yet, unclear.
However, we can say that unless the UK enters into comparable arrangements with other EU member states exiting the EU, it could mean that UK firms cease to be able to benefit from tax advantages currently available as a result of the EU’s fundamental freedoms – for example, those provided by the Parent-Subsidiary directive, the Merger directive and the Capital Duty directive.
Although in some cases, it could provide certain benefits. A UK government unconstrained by EU state aid rules and fundamental freedoms could provide UK businesses with more favourable tax treatment than that provided to other businesses.