Now That Brexit Is Official, US Businesses Should Keep Calm and Consider the Implications
Yesterday UK voters decided to leave the European Union. The decision will have serious implications for multinationals operating in the UK, and will likely affect corporate taxes, immigration requirements, cross-border trade regulations and more. It’s important to keep in mind, however, that any changes resulting from yesterday’s referendum are months away. And assuming Article 50 of the Treaty on European Union is invoked, the UK will be provided with a two-year transition period to exit from the EU.
So there is no need for US-based multinationals operating in the UK to make any rash decisions. Now is in fact the time to take a measured approach to how your business will likely operate in a UK that is not part of the EU, basing your strategy on the probable consequences of yesterday’s vote. Whether or not you agree with the decision, Brexit is a reality. And those businesses that make well-informed decisions about their UK operations can turn Brexit’s challenges into opportunities.
Below are summaries and links to three recently published articles from our Radius experts about the ramifications of a UK defection from the EU. And in order to provide you with more information, and to answer your questions about the implications of Brexit for your organization, we’ve scheduled a special webinar with these experts for July 14. Click here to register.
The Legal Ramifications of Brexit
By Stuart Buglass, VP Consulting
Many assume that in the wake of the decision to leave the EU, the UK will deregulate, or fully detach from EU regulations. This is unlikely. EU standards are driven by organizations such as the OECD and also by the need to maintain regulatory pace with major trading partners such as the US. For the UK to survive as a global economic force it must continue to match these standards, and as a result there is a limit to how far it can deregulate.
Read the full post here.
The Tax Implications of Brexit
By Tom Lickess, Director, International Tax
The UK’s impending exit from the EU represents a serious threat to the stability of the UK’s tax system. And the biggest challenge businesses will face from Brexit will be negotiating the resulting uncertainty. UK authorities will undoubtedly now begin to reassure businesses seeking stability, but at least some uncertainty will be inevitable. This situation will persist to varying degrees both during the mandated two-year period following notification of withdrawal from the EU and subsequently, as required ongoing tax legislation changes are made in the wake of the defection.
It is not possible to precisely determine the tax implications of the UK’s exit from the EU, but the following implications should be considered. Read the full post here.
Brexit from an HR Perspective
By Gareth Jarman, Director, HR Advisory
Leaving the European Union (or Community) will be unchartered territory for the UK, and indeed for those countries that will remain in the EU. Amid all the claims on both sides in the build-up to yesterday’s vote and, frankly, all the scaremongering, it is important to remember that we are now faced with a two-year transition period during which practical details will be negotiated by myriad institutions and governments. It is a journey where nobody can claim to truly know the end impact – just like when the UK opted not to adopt the euro and lose the British pound. That said, HR professionals should consider the following areas now that Brexit is a reality:
- Long-Term Planning
- Employment Law
Read the full post here.
For a special presentation from Stuart, Tom, Gareth and Katie Davies on the implications of Brexit for your organization, register for our webinar, Ask the Expert: Brexit, Now What?