Tax charge uncertainty put to bed during UK Budget announcement
The financial services were offered a view of the road ahead for Brexit during today’s UK Autumn Budget 2017, and the clarity was welcomed by Mazars partner Stephen Brown.
Brown said: “There is good news today with new clarity for some on Brexit restructuring for financial services.”
During his announcement, Chancellor Philip Hammond outlined that any immediate tax charges associated with the restructuring of businesses with operating groups in the UK to accommodate the loss of EU status would be halted.
Commenting on the announcement, Brown added: “Many businesses that are operating group structures out of the UK have been looking to incorporate their foreign branches and transfer those branch businesses across to the new company in each jurisdiction. That could have created a postponed tax charge - but because of the way several different rules interact for some it would have created an immediate tax charge.”
Today the Government clarified that this is not the intention and they have made amendments to stop the immediate tax charge for those affected.”