It is highly likely that one result of Brexit will be a shake up in the operations of many UK businesses operating cross-border in the EU especially in the financial services sector where the loss of passporting rights may require businesses to move to or establish a presence in the remaining EU member states. Such business restructurings will inevitably give rise to tax consequences which will need to be factored into the decision making process. The provisions of the EU Mergers Directive currently facilitate cross-border restructurings with the EU but in the absence of co-ordinated action many of the tax benefits of this Directive will be lost when the UK exits the EU. However in the absence of any detailed information concerning the nature of and arrangements for the UK’s exit much uncertainty will remain over the consequences of business restructurings taking place...
