Bill Dodwell, partner and head of tax policy at Deloitte considers the tax risks of the provisional agreement on Brexit transition and the various tax directives which will need to be adopted by the UK during this period
On 19 March 2018, the EU and UK announced provisional agreement on a transitional period after the UK leaves the EU on 29 March 2019. The draft agreement on the UK withdrawal was published with a note that ‘text in green is agreed at negotiators’ level and will only be subject to technical legal revisions in the coming weeks’. The transition element is Part 4 Articles 121-126 and is coloured green.
The key element is ‘Union law shall be applicable to and in the United Kingdom during the transition period… [and] shall produce in respect of and in the United Kingdom the same legal effects as those which it produces within the Union and its member states and shall be interpreted and applied in accordance with the same methods and general principles as those applicable within the Union’.
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