Fiscal Transitional Law in Case of a No Deal Brexit
The fiscal scheme entails that for tax and social security purposes, it will be assumed that the United Kingdom will not have left the European Union.
In our SAS Alert of last week we explained the possible consequences of a no deal Brexit. For example, citizens who live in the United Kingdom and pay taxes in the Netherlands, will lose their right on levy rebates and certain deductible items such as the mortgage interest deduction. For some tax regulations it is important if you live in or outside a European Union member state.
On February 4 this year, the State Secretary of Finance Menno Snel announced a fiscal transitional scheme in case of a no deal Brexit. The fiscal scheme entails that for tax and social security purposes, it will be assumed that the United Kingdom will not have left the European Union. The scheme will be applicable for individuals as well as for businesses and will especially serve to relieve administrative burdens.
In principle, the fiscal transitional scheme will apply for the remainder of the year 2019. How it exactly will be given substance, remains to be seen.
- No action is required at the moment. As soon as more information is available, we will inform you.
If you have any questions regarding the above, please contact us. We are happy to help you!
Please find the original SAS for Expats article here.