UK votes for Brexit, significant regulatory and taxation changes to follow, thinks ZEDRA
Contributed by ZEDRA
18 December, 2019
With the Conservative party having won last week's UK general election with a landslide victory, the way is now clear for policies to be put in place which once again favour London as a global financial destination for international families, thinks ZEDRA Group. Market reactions have been positive and investment decisions which have been on hold for over three years can now be revisited against a much more certain political landscape.
Bart Deconinck Deputy Global Chairman of ZEDRA Group believes that "the impact of Brexit is likely to be felt far beyond the current narrow debate between Great Britain and the EU". Deconinck points to discussions which are underway in Europe to introduce new forms of taxation for wealthy residents: "In a week where the EU Commission has unveiled their European Green Deal, which will certainly lead to more regulation, more spending, more taxes, more protectionism and more top-down control. What can possibly go wrong?" he asks.
ZEDRA is a rapidly expanding global specialist in trust, corporate and fund services with offices in thirteen countries, a factor which helps to give it a broader view of trends in global wealth flows. The company is briefing clients that, as a culturally open and highly deregulated society, the UK will be well positioned to create a global niche for business and thus become the Singapore of Europe, irrespective of its future relationship with the EU. From this point of view, it will be the EU who will be the real losers after Brexit, thinks ZEDRA. The company believes the UK might now emerge as a net beneficiary, when it comes to where global financial wealth is held. However, much will depend on future UK government policy.
Deconinck continues, "Here at ZEDRA, we are constantly monitoring changes in transnational taxation and regulatory policy direction. Our clients, who typically tend to be successful international entrepreneurs and families, have a direct interest in how the global regulatory and taxation systems are evolving and changing to meet new revenue planning objectives. Clients are mobile, as is their wealth, so if they choose to move from one jurisdiction to another, that might be as a result of a wealth preservation or growth strategy, or it may be because of a concern over political stability or a combination of both."
ZEDRA points to the fact that after Brexit, the EU will have a huge budgetary hole to fill. "Currently the UK contributes around 20% to EU budgets, but after Brexit, this source of income will go. The EU will want to continue with its plans, so other revenue sources will be needed to plug the funding gap. We think Europe's high net worths may well be in the sights of the authorities in Brussels as a result," adds Deconinck.
ZEDRA's international approach to administering client assets, a concept it calls "active wealth", is ideally suited to these new, fluid times. It is an approach which is deliberately designed not to try and be all things to all people. Under an umbrella it calls 'Active Wealth', ZEDRA is able to provide a single point of contact for the administration of a wide range of assets for families who tend to have diversified investments. ZEDRA supports clients globally with the administration of the relevant structures they require, including their corporate investment ventures, single-family offices, or private funds for various family members.
One thing is certain. With Brexit and the UK election now more clearly defined in terms of outcomes, Europe's wealthy families now need to look carefully at the changes which are on the horizon and consider new strategies to preserve wealth, which will almost certainly involve a substantial global relocation of assets.
ZEDRA is a global specialist in trust, corporate and funds services. ZEDRA's highly experienced teams deliver tailored high quality solutions to high net worth individuals and their families seeking diversified active-wealth solutions, as well as, medium to large sized companies, asset managers and their investors.
ZEDRA's full range of services is designed to preserve and protect the real value of its clients' assets. Its entrepreneurial outlook helps and supports clients in unlocking their ambitions for growth and expansion, no matter how complex their challenges might be.
ZEDRA prides itself on getting to know its clients so that its teams can anticipate their continually evolving needs and allow them to focus on their core business and broader family interests.
ZEDRA's global footprint enables its teams to deliver bespoke solutions that meet the local and international requirements of the increasingly demanding regulatory environment.
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