We take a look at the implications of the UK-EU Trade and Cooperation Agreement (TCA) and what it means for businesses. In this warning, we consider the implications for financial services, taxes, and disputes.
The United Kingdom implemented the agreement into law under the European Union’s 2020 Law (Future Relationship). Here’s what you need to know about the TCA.
What does the deal mean for financial services?
The UK and EU will agree on the details of financial services at a later date (as agreed in the joint statement on financial services supervisory cooperation published with the TCA). Check out the key points about financial services here.
The TCA contains a number of general provisions governing investments and services, including financial services, and a specific section on financial services. Take a look at what’s included in the specific financial services policy.
The Financial Conduct Authority has issued a press release on the regulatory changes companies will face at the end of the Brexit transition period
What does the deal mean for taxes and businesses?
The lengthy agreement does not fully cover taxes but does include a UK / EU commitment to international tax standards, including sharing tax information, tax avoidance and public tax transparency. Read this article that rounds up some of the key tax issues emerging from the TCA and Brexit in general.
Find out about major changes to the UK DAC6 regime (which covers reporting requirements for cross-border agreements that meet one of several “flags” that could be used to avoid or evade taxes).
The UK is leaving the EU VAT system and adopting an almost identical version of VAT, which may differ in due course. The UK will treat the import / export of goods / services with the EU in the same way as importing / exporting from outside the EU.
See how business is affecting the art and luxury markets, including the sales tax impact.
What does the deal mean for disputes and litigation?
The TCA contains enforcement and safeguards to ensure that the parties continue to meet their obligations under the TCA or a decision of the independent arbitral tribunal. You’ll find more about it here.
Check out some of the practical steps to consider now as the UK is no longer part of the EU system when it comes to cross-border disputes. This includes drafting clauses in agreements that make it clear which courts have jurisdiction in the event of a dispute. Here are more details on the things businesses should consider when it comes to contracts.
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