The referendum result – its impact on the UK tax system

How will the result of the EU referendum affect the UK’s tax system?

In the short term, the answer is ‘not at all’. For the moment, and probably for most of the next two years, the UK will continue as a member state of the EU, and EU rules will continue to have effect in the same way as at present. In the longer term, however, there may be significant tax changes, in addition to the alterations in customs duties on trade with the EU and third countries that are implicit in leaving the single market, and which have been debated at length during the referendum campaign.

Making beneficial ownership transparent

The recent leak of records held by the Panama-based legal firm Mossack Fonseca (the ‘Panama Papers’) has concentrated public and media attention on the extent to which the beneficial owners of assets may be hidden behind company and trust structures, either in the UK or overseas. However, this lack of transparency is not a new issue but one that the UK Government has been addressing by means of a number of initiatives over recent years.