Brexit and the real estate market
A new tax operating model?
Relocating significant business functions and management fee streams from the UK to another jurisdiction brings with it major tax considerations.
Whilst speculation on the political process of Brexit is hard to avoid, the real estate market is primarily focused on the short-to-medium term effects on the UK economy, as the outcome of the negotiations, and to some extent the on-going uncertainty as to what the outcome will be, are impacting on investment decisions and the UK consumer. Any impact on both the ability to conduct the business of investing in real estate is currently a second order consideration, affecting only those who operate or invest via regulated vehicles, for whom the loss of passporting rights under EU financial services regulation may require an adjustment to their business model. For real estate investment managers, there has yet been little sign of a rush to relocate functions and individuals as many are waiting until the shape of any transition arrangements are clear; this is in contrast to banks and insurers who are already starting to enact their contingency plans.
REflexions issue 6 - November 2017
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.