Northwood Accountancy | What Are Some Causes Of Concern Regarding BREXIT Tax Implications
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What Are Some Causes Of Concern Regarding BREXIT Tax Implications

What Are Some Causes Of Concern Regarding BREXIT Tax Implications

With the Departure from the EU by Britain It has created shock and some are concerned about what all this means in terms of the financial status of the U. K. And other Countries in the E. U. For now the process of complete departure is a long road and depends on several key factors. The main one being the BREXIT tax implications of the departure.

There has been no significant changes in the taxes of Britain Or surrounding countries as of yet and many experts in this field don’t expect too many changes in the future because of the departure from the EU. The general consensus is that all major business and transactions involving the U. K. And others will remain subdued until the final outcome becomes more clear and precise.

With one Prime Minister resigning and another taking their place. The new Prime Minister has stated that they will not invoke Article 50 until things become more clear and definitely not before the year 2017. Although the U. K.’s credit rating has been downgraded by the three major credit rating agencies, business costs in the U. K has increased even with the declining British Pound.

The financial markets have recovered but things are still unstable as to what will happen next. There will be many more negotiations among the EU and U. K as well as other countries. What may happen is still not clear.

The UK is still in control of its Corporate Tax Rates and many experts do not foresee them increasing the rates but eventually decreasing them over time, which will make doing business in this country cheaper for investors. This will have quite an impact on trade agreements and imports and exports within and outside of the U. K

There are still many elements that need to come together before any final decisions are made, the exit of Britain from the EU is not yet set in stone but the votes have come in to depart and many more negotiations will still have to take place. As far as the financial implications go, there may not be many changes due to this decision but only time will tell.

As with any major political upheaval, the financial markets always come to mind and create cause for concern. Taxes are something that can either increase or decrease which will impact every major financial market in the world that does business in this region.

For now, until negotiations take place and the final decisions have been made, those in the financial markets will do well to prepare for anything that may happen. It is always wise to calculate the risks of your investments and judge whether or not the final implications will prove profitable or create massive losses. Whatever the outcome, any decisions that will be made will be made in the best interests of all parties concerned and also the financial impact will be taken into consideration as well for the good of businesses and people alike.