Expert views on the UK’s Brexit vote
By Chang Lin Zhu, 24 Jun 16
Members of International Adviser’s Tax & Technical Panel give their views on the outcome of Britain’s decision to leave the European Union.
“The UK’s Brexit vote is just the start of a process of withdrawal which is expected to take roughly two years. During that period, the UK will remain a part of the European Union and investment product providers based in other EU countries will continue to sell their products into the UK. What terms will apply to these providers when the UK leaves the EU is unknown.
“In deciding whether to recommend offshore bonds and when talking to UK clients who may be thinking of selling existing holdings, advisers should bear in mind that European law protecting policyholders continues to apply in the transition period, and that regulations that have been incorporated into domestic law won’t fall away automatically once the UK has left the EU.
“Similarly the benefit of gross roll up tax treatment will continue to apply and we don’t expect the Brexit decision to affect the UK tax treatment of offshore bonds.”