The Prospect of a Hard BREXIT: Considerations Regarding the Tax Treatment of Cross-border Investments

The process of leaving the EU was initiated by a referendum held in June 2016 which favoured British withdrawal from the EU, commonly referred to as “Brexit”, with a 52% majority. On 29 March 2017, the United Kingdom (“UK”) gave formal notice to the European Council of its intention to withdraw from the European Union (“EU”). According to Article 50 of the Treaty on European Union, the UK and the EU have a two-year period to negotiate the withdrawal conditions and their future relationship. This negotiation period ends on 29 March 2019 and, in the absence of a withdrawal agreement approved and ratified by the UK and the EU, this means that the UK is scheduled to cease being a member of the EU on 30 March 2019.