Expert views on the UK’s Brexit vote
By , 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.
“Clients are going to want reassurance during this period of uncertainty. Many of the rules regarding client policies, investments, tax status etc are governed by the relevant jurisdiction and not by the EU, for example in the UK these are set by HMRC, so automatic wholesale changes are unlikely.
“Exactly what the landscape will look like when the UK extracts itself from the EU is far from clear, but nothing will change immediately, and any change could be years away.
“Many UK and EU advisers currently operate under the passporting agreement, it is uncertain how this will change and how they will be able to continue working with cross-border clients. Qrops legislation was born out of EU legislation, so the leave vote from the referendum may well have implications. Expats may have many concerns during this period, but until the details are known it is difficult to predict what the impact will be.
“The biggest and most immediate cause for concern will be the likely fall in equity markets. We could see markets over-react in the short-term, followed by a snap-back as investors digest the news.
“History tells us that usually the right thing to do – and often the hardest thing to do – is avoid the temptation to change portfolios and sell when prices are already depressed. However, if you have clients with portfolios plummeting in value, some action may need to be taken.”
Tags: Brexit
