As the impact of the recent EU referendum is analyzed and assessed, we are all observing wild speculation competing with conservative optimism. Whilst there is certainly some further disentangling to emerge, it would appear that in relation to inheritance and personal taxation matters, BREXIT is unlikely to have a major impact.
In the UK, tax treatment of individuals is largely governed by UK law with little EU influence. British citizens with property overseas however may want to see how the detail plays out in respect to the treatment of their assets.
The UK has a number of separate legal processes in relation to succession in that Scotland, England & Wales and Northern Ireland have their own rules of succession. Each of these legal systems is largely unfettered by EU law and Britain’s exit is unlikely to create a major impact.
The UK and Ireland did not sign up to the EU Succession Regulation (2015) and therefore it is not expected that UK succession rules will be impacted as a result of our departure. However, time will tell if British citizens with foreign property may in the future no longer be able to elect to apply UK law to the whole of their estate (including foreign property) whether they live in the UK or an EU member country. This could mean that foreign assets become subject to various forced heirship rules and tax laws applicable to the country where the property is located, but we can only speculate what the future holds for this particular aspect.
Whilst there may be far reaching consequences in other areas that may impact our daily lives, it could take years for a British exit from the EU to be fully implemented. That’s if a second referendum isn’t called of course. What is certain is that we can only continue to move forward, plan ahead and push on in creating our own small legacy of certainty for our loved ones in a current moment of wider uncertainty.