Introduction
The initial
economic and emotional response to the UK’s vote to exit the EU is now behind
us, leaving much conjecture and ambiguity. One certainty is that we will
continue to work closely with our clients to inform, manage and where possible,
mitigate the risks they may face
Key milestones in the BREXIT
process are:
• UK
notification to the European Council of its intention to withdraw from the EU
under Article 50 of the Treaty on
European Union. This is not expected to take place in 2016 but, once Article 50
is triggered, the UK will leave the
EU two years later (unless all other EU member states agree to an extension of
that period).
• European
Council’s adoption by consensus of the guidelines for the EU mandate to
negotiate and complete the Withdrawal
Agreement. The timescale for the negotiation is not set and may well take
longer than the original two
year Article 50 time-frame.
• Trade
deals with EU and non-EU countries as they fall due. Non-EU country trade deals
are already being discussed now
but Germany and France have publicly stated that the EU trade deal negotiation
will not commence until Article
50 is triggered by the UK. It is expected that the negotiations will take place
during the post Article 50
notification, thus allowing quicker resolution post the conclusion of the
Withdrawal Agreement. If new trade
deals are not negotiated in the two year period (and any extension) then the UK
could potentially have to fall back on
World Trade Organisation trade principles until the trade deals are finalized
(which impose tariffs on
certain good and services etc).
Next steps
We will continue to monitor the situation, and provide
insight and updates as set out above. You can expect timely information, advice
and solutions to best place you to manage the risks your business will face
Please call us and we’d be
delighted to discuss the above further.
PJ - APJ Accountancy
☎ 020 89310165
☏ 07900537459
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