As referendum fever subsides slightly, the impact of the historic “NO” vote will unravel over the coming months, as UK politicians seek to implement pledges and commitments given during the referendum. The impact that this may have on the UK tax regime is uncertain, but could yield significant changes if greater powers are devolved to the various regions of the United Kingdom.
If Scotland are to be given additional tax raising powers, as has been intimated, then other regions of the United Kingdom may seek similar authority. This could be at a national level (England, Wales or Northern Ireland); regional level (county and local authority) or even at municipal level for the major cities.
The United Kingdom currently has a standardised tax system irrespective of geographical location, although a level of regional aid has been applicable. However, any new powers devolving to the regions may have an impact for location of businesses; location of staff/employees and individual tax payers, and the attractiveness for inbound businesses coming to the UK. Here at Blick Rothenberg LLP, we will continue to monitor and assess the various proposals and speculation to determine the impact and opportunities for our clients.
Although the implementation date for any new changes has not yet been clarified, politicians have indicated that any new powers will be concluded by early 2015. Therefore, in the next few months there will be a lot of posturing by politicians and tax planning by accountants!