Question

In March 2017, the UK activated Article 50 of the Lisbon Treaty, thereby commencing its exit from the European Union (EU). In April, the announcement of early elections in the UK showed the continued unpredictability related to the UK's June 2016 referendum on Brexit. This decision created uncertainty among many UK companies, since the UK currently operates under EU tax treaties. UK companies are faced with many questions, including which additional disclosures should be included in financial statements to highlight these uncertainties to investors, as well as what tax laws will be followed after BREXIT.

What are the recent changes in the BREXIT decision, as well as the impact BREXIT will have on your UK client base. Answers should be current to 2017, and not as of the original decision in 2016.

Answer 1

The UK will remain a member of the EU during negotiations, but it has given up its rotating presidency of the European Council - which was scheduled for the second half of 2017 - to concentrate on Brexit.

While Article 50 says any deal will need the "consent of the European Parliament", it doesn't say anything about the parliament of the departing state.

However, after appearing to resist calls at first, the prime minister said in January both the Commons and Lords would get a vote on the final deal. The UK Parliament will also scrutinise the government's work on Brexit through parliamentary debates, select committee work, and votes on proposed legislation.

Other issues which are likely to be discussed are things like cross-border security arrangements, the European Arrest Warrant, moving EU agencies which have their headquarters in the UK and the UK's contribution to pensions of EU civil servants - part of a wider "divorce bill" which some reports have suggested could run to £50bn.

The government published a report before the UK's 2016 referendum on the process for withdrawing from the European Union, suggesting other areas which could be debated