Brexit – Tax Advisory – Ireland

The decision of the United Kingdom to leave the European Union was one of shock and regret for most Irish businesses. Ireland is the UK’s closest neighbour and the member state with the deepest political, social and economic ties. As the only native English speaking common law jurisdiction remaining within the EU, Ireland is uniquely placed to benefit from some opportunities that will arise, particularly in the financial services industry.

Similar to many areas the potential impact of Brexit in the area of taxation is difficult to assess, not least because of the uncertainty as to the precise manner and timing of the UK’s exit from the EU and the nature of its future relationship with the EU. While taxation is largely within the competence of individual member states under EU law, the influence of the EU Treaty and its fundamental freedoms, EU directives and regulations in the field of taxation as well as case law from the Court of Justice of the European Union have had a considerable effect on shaping the domestic tax policy of the UK and the other member states. As such, a departure from the EU and cessation of the application of EU law could have significant implications for the UK tax code and for businesses operating in UK.

While the potential impact of Brexit is uncertain and is likely to remain so for some time, we set out below our views on what Brexit may mean in tax terms for the UK generally, its potential impact on Ireland’s tax system and its potential impact on clients in terms of the tax treatment of existing transactions, transactions with the UK and for those UK clients who are considering a move to Ireland.

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