Brexit and the Route Map?
Do all roads lead to Rome?
Whatever people think of the merits or demerits of Brexit, if, as seems increasingly likely, we fail to agree on all aspects of a Brexit formula before March 2019 (now just a few months away) how are we supposed to advise clients?
It is the nature of our business that we often get asked about the more esoteric bits of tax practice, such as cross border matters and the impact of double tax.
Here is an example, which we have just looked at as part of researching advice for a client in respect of the Swiss/UK double tax treaty. Of course, Switzerland is not a member of the EU. However, Clause 18 (4) of the UK/Swiss Treaty only applies if the individual making the claim is “subject to the legislation of the Home State in accordance with the Agreement on the Free Movement of Persons”.
I appreciate this may only apply to a few people, although it should be noted the Governmental Authorities each thought the issue significant to incorporate specifically into the Treaty. Anyway, are not individual citizens important?
Additionally, if EU concepts are so ingrained into UK tax procedure as to affect non-EU Treaty countries, surely there must be more issues lurking.
Professional bodies what are your views?
In this context, I commend the Article by Alistair Spencer Clarke in the August 2018 edition of ICAEW Tax Line. Ownership of Spanish property is not an outlandish thought for many UK citizens, quite apart from many other cross border situations which are now common place in our shrinking world.
Please can we start a debate about how to approach this matter? Here I am talking about practical reality and proper approaches for Tax Practitioners to ensure they are giving best advice to clients. Constitutional jurisprudence is for another day!