Tue, Mar 24, 2020

Andy Murray Speaks to Bloomberg Tax About the Status of EU Directives Post-Brexit

Andy Murray, Managing Director in Duff & Phelps Regulatory Tax Advisory practice, recently discussed the withholding tax implications of the UK’s departure from the EU with Bloomberg Tax.

Andy commented that as of January 31, 2020, the UK has entered its transition period, whereby the government has just under a year to see whether it can formulate a trade deal with the EU. Meanwhile, the European Union Act 2018 ensures the UK will continue to be subject to EU rules and regulations for the next 10 months. 

He further added that a significant friction for companies trading across borders is withholding tax. Withholding tax costs were traditionally managed through double tax agreements (DTA) agreed bilaterally. What is clear is that, in the absence of a “managed exit,” the UK will revert to reliance on DTAs, some of which provide less favorable terms than the existing EU directives.”

Read the full article here.