The Conservative party has won a large majority in the House of Commons which sends a clear message for the direction of travel for Brexit. Prime Minister Boris Johnson has ruled out any extension of the transition period. This means that:
- there is little doubt that the UK will legally leave the EU on January 31, 2020 and begin its transition period, during which the UK will continue to participate in the single market, customs union and all EU policies; and
- the deadline for reaching a comprehensive future trading agreement, or facing a “no deal” outcome is now to be locked in as December 31, 2020, when the transition period will end.
The prominent international tax impact of these deadlines is covered in the attached factsheet.