If Brexit takes place, the UK’s tax regime will face greater competition as a holding company and business jurisdiction. Tempting though it may be to restore UK tax rules to their pre-EU Directive and case law positions, most such changes would be likely to hinder rather than help the UK in competing for investment. It should be possible to restore some domestic exemptions, but we should not undo the modernising work of some of the EU rules. The impact of BEPS must also be taken into account, as the implementation period will overlap with any Brexit negotiations.
