On Friday June 24, the world woke up to the news that the United Kingdom had voted to leave the E.U.
The resulting economic uncertainty has sparked market volatility, as everyone struggles to predict the consequences of such an unprecedented move.
It’s important to note that there are no immediate tax consequences of the referendum. Parliament hasn’t triggered Article 50, and even once Article 50 is set in action, the U.K. will have two years to hammer out a plan for exiting the E.U.
When the United Kingdom does strike out on its own, it will impact businesses headquartered in Britain, as well as those who operate within its borders. While much is still uncertain, the articles below represent some of the best attempts to decipher the tax and mobility implications of Brexit for companies.
- Before Brexit occurred, Bloomberg looked at how it might cause UK companies to lose billions in corporate tax breaks.
- The BBC delves into what Brexit will mean for expats working in the U.K. and touches on how they will be affected, both in terms of mobility and taxes.
- Relocate Magazine looked at the immigration consequences of Brexit and how it will impact companies with mobile employees.
- DLA Piper gives a quick run-down of Brexit implications for corporate transaction and withholding taxes, as well as corporate tax systems more broadly.
- In Forbes, Joe Harpaz argues that Brexit will introduce even more complexity into an already convoluted corporate tax system, creating more inefficiency for companies.
- PwC looks at how Brexit will have income tax treaty implications for the U.S.