Brexit: A Breakbown of the Possible Affects

With the result of the United Kingdom’s exit from the European Union sending shockwaves throughout the world and UK businesses, it is crucial that management teams consider the short and long-term implications Brexit will have on their business. Although Brexit may have little immediate impact beyond increased volatility in the currency markets and stock markets, if there is an Emergency Budget designed to calm these markets, this may bring substantive tax changes fairly quickly. The long term effects on business could be more fundamental and are unlikely to make it easier to do business within the EU. How much easier or more difficult EU trade becomes will clearly depend on the terms the UK can agree for Brexit.

For Namibia, the British exit could mean a reduction in our beef exports as these trade argeements will most likely be re-negotiated. Fortunately Namibia does more trade with the the EU than with the UK, acording to the Minister of Finance Mr. Callie Schlettwein .

For South Africa, the Brexit brings bad news. The UK is one of the biggest investors in South Africa, and this can lead to drastic increases in food prices and possible job losses. The re-negotiation of import and export agreements with the UK and the EU could also severly affect the price of goods.

At the moment economists all over the world are speculating about the possible affects of the Brexit. No one can really tell what is going to happen, for now it is one big guessing game.

BDO UK had the following to say:

• Statement from BDO's Managing Partner
• Five tax implications for businesses

BDO SA had the following to say:

• A South African Reflection on the British Exit (Brexit) - See more at: https://www.bdo.co.za/en-za/insights/2016/tax/south-african-reflection-on-the-british-exit-brexit#sthash.5dBoW5He.dpuf
  A South African Refection on the British Exit (Brexit)