The British public voted on whether the UK should leave or remain within the European Union. With 51.9% voting to leave, and Cameron’s impending departure what does this all mean for the UK?
While the UK currently remains a member of the EU, European laws (and UK laws that are based on them) continue to apply in the UK until we reach a deal with the remaining EU states. It is too soon to say what the full consequences will be, and what a post ‘Brexit’ relationship with the EU will be, but these laws affect a vast range of people, from homeowners to small businesses, farmers to environmental bodies. They will take a lot of time to unpick, and a lot of negotiating to agree which common standards will continue to apply. We do not expect the next Prime Minister to invoke the “article 50” process, which starts the final 2 year countdown to ‘Brexit’, until those negotiations are well advanced.
International Owners of UK Property
The instability arising from the UK’s decision to Brexit, including a weakened sterling, is likely to dent the UK’s reputation as a safe haven in an otherwise uncertain global market and prompt foreign individuals who own UK residential property to sell and look to invest elsewhere. For others, a weakened currency may well offer an opportunity to enter the London property market, which for many, until now, had become too expensive.
Non Domiciled Individuals
With the Government having to deal with the aftermath of Brexit and David Cameron’s decision to resign as Prime Minster, it is unlikely that we can expect to see the much delayed consultation documents on the new ‘non dom’ rules any time soon, despite hopes that they would be published following the referendum and before Parliament rises for its summer recess. This is likely to spell further uncertainty for UK resident and non-UK domiciled individuals (so called ‘non doms’) in the run up to the new rules coming into force on 6 April 2017 and means that the window for planning before then will be even shorter than had been anticipated.