How will “Brexit” impact American businesses?
Between the Presidential primaries and an extended opening on the Supreme Court, the U.S. has its fair share of political challenges. When you look over to the U.K., however, which is currently voting on “Brexit”— Britain departing from the European Union (EU) — you’ll see we’re not alone.
But do U.S.-based multinationals have an interest in whether the U.K. stays in or leaves the EU? Absolutely. A vote to leave the European Union would raise a number of questions, particularly on the coattails of the uncertainty that still accompanies the implementation of Base Erosion and Profit Shifting (BEPS) related measures. U.S. business interests seem to be aligned with the status quo.
The U.K. is a natural platform for U.S. business operations in Europe given the common language and cultural connections. In addition, it’s easy to access the EU’s common marketplace through the U.K. —where the tax environment is very friendly to many U.S.-based businesses.
Notwithstanding BEPS-related changes, tax strategies employed by U.K. holding companies and through the patent box regime may need to be reconsidered if a Brexit comes to fruition.
Are you concerned about Brexit and how it could impact your company?