Skip to Content

How will “Brexit” impact American businesses?

March 22, 2016 Blog 1 min read
Do U.S.-based multinationals have an interest in whether the U.K. stays in or leaves the EU? Absolutely! A vote to leave would add to the uncertainty already accompanying the implementation of Base Erosion and Profit Shifting (BEPS) related measures.

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?

Related Thinking

Young couple learning about state and local tax from accountant.
September 26, 2023

State and local tax advisor: September 2023

Article 23 min read
Group of business professionals discussing downward attribution rules.
September 26, 2023

Multinationals can limit the effect of a pivotal tax rule repeal

In The News 5 min read
U.S. government building.
September 22, 2023

IRS halts processing of new ERC claims; new processes to be implemented

Article 9 min read