Why post-Brexit UK will be a great place to invest
Brexit is here.
The UK population’s historic decision to leave the European Union was one of the most significant events in modern British history. As a result, the UK ceased to be a European Union member on 1 February 2020.
After months of negotiations during a transition period, the UK and the European Union finally agreed on a deal that defines their future relationship. The EU–UK Trade and Cooperation Agreement (TCA) came into effect on 1 January 2021 and governs how both sides will live, work and trade together.
Under the terms of the deal, the UK and the EU will continue to trade freely. However, some new checks have been introduced at borders, such as safety checks and customs declarations.
Having left the EU, the UK is now re-establishing an independent trade policy and negotiating new trade agreements with other countries.
Opportunities To Be Seized
That being said, it is safe to make a few assumptions about this new chapter in the country’s history. The UK will continue to be a major player on the global financial stage after it leaves the EU, an attractive place of limitless opportunities for businesses in new markets. The world’s fifth-largest economy will still be interested in attracting people who invest in the UK and open for business to international clients. British people will always want to buy goods from overseas,
whether it’s cars from Germany, wine from France and clothing and footwear from Italy. Therefore, it will always be an attractive market to sell to.
Despite the political turmoil, negative newspaper headlines and uncertainty, the UK is a forward-looking country, integrated into the global economy with a business-friendly environment. And it is likely to remain that way.
Evidence that the country will continue to be a leading player on the global financial stage comes from the Financial Conduct Authority. In October 2019, the regulatory body revealed that more than 1,400 EU-based firms have applied for permission to operate in the UK after Brexit. Over 1,000 of these are planning to open an office in the country for the first time.
There are many other reasons why the UK will continue to be one of the planet’s leading business locations. This diverse market with world-leading industries (such as life sciences, creative, financial and business services, information and communications technology and engineering) provides easy access to customers, innovators, suppliers and partners.
In a post-Brexit world, the UK will continue to be one of the top places in the world to do business with a range of attractive conditions for companies. These include one of the lowest Corporation tax rates in the G20, a variety of tax reliefs, access to a global talent pool and a supportive environment for innovation.
According to the World Bank, the UK is the most business-friendly of Europe’s 10 largest economies. It also an easier place to start a business than many other countries on the European continent. Additionally, the UK has a robust and integrated transport infrastructure with advanced road and rail networks, more than 100 ports and the largest air transport system of any major European economy.
Doing business in Britain will also continue to be a good choice because the world’s oldest democracy has a stable legal and regulatory environment that supports and protects business interests.
It is true that Brexit is complicated and brings uncertainty to the business environment, but establishing a UK presence continues to represent an attractive proposition full of tremendous opportunities for many overseas companies.
Brexit Planning: How We Can Help
If you are considering your options but aren’t sure where to start, our experienced accountants and business advisors can help.
We are closely monitoring the situation and can provide you with strategic advice and insights. We’ll harness our range of expertise to help you navigate the transition period and what comes next as soon as new conditions are known.