Brexit Analysis

This page features the Institute's representations and analysis on the impact of the UK’s withdrawal from the EU, in the area of customs and taxation, as well as Government and European resources for businesses in the lead up to Brexit.

On 23 June 2016, the UK electorate voted to leave the European Union and on 29 March 2017, the UK notified the European Council of its intention to withdraw from the EU in accordance with Article 50 of the Treaty on European Union. The European Council adopted a set of political guidelines on 29 April 2017, which define the framework for the negotiations and set out the EU's overall positions and principles. Brexit negotiations between the EU and the UK began on 19 June 2017.

On 14 November 2018 the Heads of State/Government of the remaining 27 EU Member States approved a Withdrawal Agreement  negotiated by the European Commission and the UK Government. A Political Declaration on future EU-UK relations was also approved at the same time.

The UK’s membership of the EU was initially due to lapse on 30 March 2019, two years from the day it formally notified of its intention to withdraw from the EU. However, the European Council decided, in agreement with the UK, to extend the two-year period provided for by Article 50, until 31 October 2019.

On 17 October 2019, it was announced that the EU and the UK had reached a revised Withdrawal Agreement, which includes a revised Ireland/Northern Ireland Protocol and a revised Political Declaration. Under the revised Withdrawal Agreement, Northern Ireland would remain aligned to certain Single Market rules, avoiding the requirement for a customs border on the island of Ireland, while ensuring that Northern Ireland remains part of the UK's customs territory.

On 28 October 2019, the EU agreed a further three-month extension to the Brexit deadline of 31 October 2019, making the new Brexit deadline 31 January 2020. On 24 January 2020, President of the EU Council, Charles Michel and the President of the European Commission, Ursula von der Leyen both formally signed the Brexit Withdrawal Agreement.  This followed on from the legislation implementing the agreement receiving royal assent on 23 January 2020.  On 24 January 2020, UK Prime Minister, Boris Johnson also signed the Withdrawal Agreement cementing the UK’s departure from the EU on 31 January 2020.  The Withdrawal Agreement was presented to the European Parliament on 29 January for ratification, which ensured the orderly exit of the UK from the EU at midnight on 31 January.

As the Withdrawal Agreement has now come into effect, a transition period began on 1 February 2020. The UK is no longer represented in the EU institutions, agencies, bodies and offices but EU law will still apply in the UK until the end of the transition period.

This means the UK will continue, for the purposes of the movement of goods, as if it were a full EU Member State until the end of the transition period. The transition period is due to end on 31 December 2020, however it may be extended up to 31 December 2022 if agreed by the EU and the UK.

Part 15 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 came into operation with effect from 31 January 2020 at 11pm.  This means that where the term ‘Member State’ is used in any enactment it should be interpreted as including the UK for the duration of the transition period created by the Withdrawal Agreement.


Irish Tax Institute Brexit Seminars

Irish Tax Review Brexit Articles

TaxFax Brexit Updates Article

Irish Tax Institute Representations

In February, the Institute made representations to Revenue via TALC (Tax Administration Liaison Committee) on the key measures needed to alleviate the potential impact of a ‘no deal’ Brexit.

We understand from discussions at TALC that it was intended that the Miscellaneous Provisions (Withdrawal of the United Kingdom from the European Union) Act 2019 (the Withdrawal Act) would cover only those measures which would have an immediate impact in the event of a ‘no-deal’ Brexit and that other Brexit-related tax issues would be addressed in Finance Bill 2019.

In June, as part of our Pre-Finance Bill 2019 Submission to the Department of Finance, the Institute identified several circumstances that are not covered by the Withdrawal Act, which we believe should be included in Finance Bill 2019, in order to ensure that the status quo for taxpayers will be maintained in the event of a ‘no-deal’ Brexit.

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