logo
Brexit: Scenario after general election.
  • 10 January, 2020

OVERVIEW

As we all know, the Conservative Party has won the previous election by a clear majority to the detriment of the Labour Party, bringing clarity to what will be the political scenario of the next UK government. Obviously, the main task will be having the Brexit Withdrawal Agreement Bill ratified by the European Parliament by the 31st of January 2020, but we need to be aware that another deadline not less important will lead a tax change and issues to be addressed in February Budget.

The Withdrawal Agreement vote, which took place on the 23rd of December 2019, led to the approval of the Brexit deal. This bill must still go on to further scrutiny in Parliament but it is expected to be passed easily following the Conservatives majority. Once the Withdrawal Agreement is passed, the European Parliament still needs to ratify the deal before the 31st of January 2020 deadline for Brexit to happen. This new deal includes changes to the one backed in October. The Withdrawal Agreement Bill legally prohibits the government from extending the transition period beyond the 31st of December 2020. This is a significant change as Boris Johnson will have 11 months, from the moment the UK departs the EU on the 31st of January Brexit deadline, to close the trade deal with the EU. During this transition, period the UK remains part of the EU but will not participate in EU meetings and votes. However, the EU and the UK will negotiate their future relationship. A comprehensive free trade agreement (FTA) is expected with zero tariffs on most goods and services and minimal border checks. If an FTA cannot be concluded on time, businesses could be subject to disruptions and additional costs from the 1st of January 2021. However, these hypotheses seem to be quite remote as both parties have started to be willing to negotiate trade agreements in the foreseeable future.

 

IMPLICATIONS ON TAX POLICIES

After the transition period, as of the 1st of January 2021, the UK will no longer apply EU tax directives. These directives include Parent-Subsidiary Directive, which provides for tax exemption for cross-border dividends paid between related companies located in different Member States, and Interest and Royalties Directive, which abolishes wherever possible withholding taxes on interests and royalty payments between the Member States. Up till now, these EU directives allowed for exemptions or reduced withholding tax (WHT) rates. Groups may find that post-Brexit they have additional WHT costs to manage from January 2021 unless new agreements are reached or the groups themselves restructure, as extending the transition period is no longer an option.

With regards to the upcoming February Budget, the tax content from the Conservative Party´s Manifesto easily translates into Budget measures. This tax policy will focus on ensuring all tax due is collected and on keeping UK tax burden as low as possible. This is consistent with the commitments made to increase spending. Some areas which are relatively clear at this stage include an increase in the level above which national insurance becomes payable both by employers and employees (the national insurance primary and secondary threshold) from £8,632 to £9,500. Corporation tax measures that have high chances to be passed include the cancellation of the 2% cut to the enacted corporation tax rate, so that it stays at 19% from April 2020, along with the increase in structures and building allowance (SBA) to 3%. The SBA is tax relief for capital expenditure on both new buildings and extensions/refurbishments of existing premises for construction work contracts as of the 29th of October 2018. Lastly, Research and Development (R&D) tax credit relief will increase from 12% to 13% and the definition of R&D could change to include data and cloud computing. Other areas are less clear at this stage. These include the future of digital services tax (DST), as the government could introduce a 2% tax on the revenues of search engines, social media platforms and online marketplaces which derive value from UK users, along with is the review and reform of Entrepreneurs’ Relief, which reduced the amount of Capital Gains Tax paid on business assets to 10%, and the limitation of arbitrary tax advantages for the wealthiest in society.

For employers, we may see the increase of employment allowance from £ 3,000 to £ 4,000, along with a possible increase in the amount and scope of the National Living Wage. New taxes could include a plastic packaging tax and a new Stamp Duty tax surcharge on non-residents buying UK residential property. New laws could include a new anti-avoidance and evasion law.

In light of the foreseeable Brexit deal and the future February Budget, businesses now have the chance to engage with the UK Treasury so that they will be ready to make the best of this tax policy cycle, which will begin with the Budget in February. It might be the right time for the UK government, stronger of its majority, to choose to supplement these Manifesto’s commitments with new, additional policies to reinforce that the UK is “open for business” as well as to attract and support investment.

Category: Blog

Post a comment

To post a comment you must be registered. If you are already registered you can login.

Register

Tick this box to indicate that you have read and understood the terms and condition of the Privacy Policy

Privacy Policy

BACKGROUND:

User understands that your privacy is important to you and that you care about how your personal data is used and shared online. We respect and value the privacy of everyone who visits this website, www.well-tax.com (“Our Site”) and will only collect and use personal data in ways that are described here, and in a manner that is consistent with Our obligations and your rights under the law.

Please read this Privacy Policy carefully and ensure that you understand it. Your acceptance of Our Privacy Policy is deemed to occur upon your first use of Our Site. If you do not accept and agree with this Privacy Policy, you must stop using Our Site immediately.

1. Definitions and Interpretation

In this Policy, the following terms shall have the following meanings:

“personal data”

means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and

“We/Us/Our”

means WellTax Limited, a limited company registered in England and Wales under company number 09572130 whose registered address is 402a City Gate House, 246-250 Romford Road, London E7 9HZ.

2. Information About Us

• Our Site is owned and operated by WellTax Limited, a limited company registered in England and Wales under company number 09572130 whose registered address is 402a City Gate House, 246-250 Romford Road, London E7 9HZ.

• Our VAT number is GB 221 1287 52.

• Our Data Protection Officer is WellTax Limited and can be contacted by email at info@well-tax.com, by telephone on +44 (0) 20 3581 1717, or by post at https://well-tax.com/contact.

• We are regulated by the ICO (Information Commissioner’s Office, https://ico.org.uk/).

3. What Does This Policy Cover?

This Privacy Policy applies only to your use of Our Site. Our Site may contain links to other websites. Please note that We have no control over how your data is collected, stored, or used by other websites and We advise you to check the privacy policies of any such websites before providing any data to them.

4. Your Rights

• As a data subject, you have the following rights under the GDPR, which this Policy and Our use of personal data have been designed to uphold:

• The right to be informed about Our collection and use of personal data;

• The right of access to the personal data We hold about you (see section 12);

• The right to rectification if any personal data We hold about you is inaccurate or incomplete (please contact Us using the details in section 13);

• The right to be forgotten – i.e. the right to ask Us to delete any personal data We hold about you (We only hold your personal data for a limited time, as explained in section 6 but if you would like Us to delete it sooner, please contact Us using the details in section 13);

• The right to restrict (i.e. prevent) the processing of your personal data;

• The right to data portability (obtaining a copy of your personal data to re-use with another service or organisation);

• The right to object to Us using your personal data for particular purposes; and

• Rights with respect to automated decision making and profiling.

• If you have any cause for complaint about Our use of your personal data, please contact Us using the details provided in section 13 and We will do Our best to solve the problem for you. If We are unable to help, you also have the right to lodge a complaint with the UK’s supervisory authority, the Information Commissioner’s Office.

• For further information about your rights, please contact the Information Commissioner’s Office or your local Citizens Advice Bureau.

5. What Data Do We Collect?

Depending upon your use of Our Site, We may collect some or all of the following personal data:

• name;

• date of birth;

• gender;

• business/company name;

• job title;

• profession and studies;

• contact information such as email addresses and telephone numbers;

• demographic information such as post code, preferences, and interests;

• IP address;

• web browser type and version;

• operating system;

• a list of URLs starting with a referring site, your activity on Our Site, and the site you exit to;

6. How Do We Use Your Data?

• All personal data is processed and stored securely, for no longer than is necessary in light of the reason(s) for which it was first collected. We will comply with Our obligations and safeguard your rights under the GDPR at all times. For more details on security see section 7, below.

• Our use of your personal data will always have a lawful basis, either because it is necessary for Our performance of a contract with you, because you have consented to Our use of your personal data (e.g. by subscribing to emails), or because it is in Our legitimate interests. Specifically, We may use your data for the following purposes:

• Supplying Our services to you (please note that We require your personal data in order to enter into a contract with you);

• Personalising and tailoring Our services for you;

• Replying to emails from you;

• Supplying you with emails that you have opted into (you may unsubscribe or opt-out at any time by sending an email to info@well-tax.com specifying that you no longer want us to keep your data;

• Market research;

• With your permission and/or where permitted by law, We may also use your data for marketing purposes which may include contacting you by email, telephone, text message, and post with information, news, and offers on Our services. We will not, however, send you any unsolicited marketing or spam and will take all reasonable steps to ensure that We fully protect your rights and comply with Our obligations under GDPR and the Privacy and Electronic Communications (EC Directive) Regulations 2003.

• You have the right to withdraw your consent to Us using your personal data at any time, and to request that We delete it.

• We do not keep your personal data for any longer than is necessary in light of the reason(s) for which it was first collected. Data will therefore be retained for the following periods (or its retention will be determined on the following bases):

• In the “Newsletter Section” data will be kept for an unlimited period, however, an unsubscribe option will be available for the individual that would like to opt out.

• In the “Post a Comment Section” data will be kept for an unlimited period, however, the individual could always unsubscribe by sending an email to info@well-tax.com.

• In the “Contact Us”, “Get in Touch” and “Careers” section data will be kept for two years, allowing Welltax Limited to have a reasonable amount of time to contact potential customers and employees.

7. How and Where Do We Store Your Data?

• We only keep your personal data for as long as We need to in order to use it as described above in section 6, and/or for as long as We have your permission to keep it.

• Your data will only be stored in the UK.

• Data security is very important to Us, and to protect your data We have taken suitable measures to safeguard and secure data collected through Our Site.

• Steps We take to secure and protect your data include:

• Encrypted Hard Disc Data

• Website Control Panel locked with password

8. Do We Share Your Data?

• Subject to section 8.2, We will not share any of your data with any third parties for any purposes.

• In certain circumstances, We may be legally required to share certain data held by Us, which may include your personal data, for example, where We are involved in legal proceedings, where We are complying with legal obligations, a court order, or a governmental authority.

9. What Happens If Our Business Changes Hands?

• We may, from time to time, expand or reduce Our business and this may involve the sale and/or the transfer of control of all or part of Our business. Any personal data that you have provided will, where it is relevant to any part of Our business that is being transferred, be transferred along with that part and the new owner or newly controlling party will, under the terms of this Privacy Policy, be permitted to use that data only for the same purposes for which it was originally collected by Us.

• In the event that any of your data is to be transferred in such a manner, you will not be contacted in advance and informed of the changes.

10. How Can You Control Your Data?

• In addition to your rights under the GDPR, set out in section 4, when you submit personal data via Our Site, we aim to give you strong controls on Our use of your data for direct marketing purposes (including the ability to opt-out of receiving emails from Us which you may do by unsubscribing using the links provided in Our emails and at the point of providing your details).

• You may also wish to sign up to one or more of the preference services operating in the UK: The Telephone Preference Service (“the TPS”), the Corporate Telephone Preference Service (“the CTPS”), and the Mailing Preference Service (“the MPS”). These may help to prevent you receiving unsolicited marketing. Please note, however, that these services will not prevent you from receiving marketing communications that you have consented to receiving.

11. Your Right to Withhold Information

You may access certain areas of Our Site without providing any data at all. However, to use all features and functions available on Our Site you may be required to submit or allow for the collection of certain data.

12. How Can You Access Your Data?

You have the right to ask for a copy of any of your personal data held by Us (where such data is held). Under the GDPR, no fee is payable and We will provide any and all information in response to your request free of charge. Please contact Us for more details at info@well-tax.com, or using the contact details below in section 13.

13. Contacting Us

If you have any questions about Our Site or this Privacy Policy, please contact Us by email at info@well-tax.com, by telephone on +44 (0) 20 3581 1717, or by post at https://well-tax.com/contact. Please ensure that your query is clear, particularly if it is a request for information about the data We hold about you (as under section 12, above).

14. Changes to Our Privacy Policy

We may change this Privacy Policy from time to time (for example, if the law changes). Any changes will be immediately posted on Our Site and you will be deemed to have accepted the terms of the Privacy Policy on your first use of Our Site following the alterations. We recommend that you check this page regularly to keep up-to-date.

Login
Let us keep you updated with our Newsletter