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Post Election – has business confidence returned?

Post Election – has business confidence returned?

Post Election – has business confidence returned?

Many of our clients have been impacted by the economic and political uncertainty caused by Brexit and the recent General Election campaign. This uncertainty has impacted the strategic thinking of many business owners and delayed investment decisions and transactions.

We considered this uncertainty and the impact on potential disposals, acquisitions and reorganisations in our communication of 18 October

Our key message acknowledged the uncertainty but emphasised that business owners should prepare for transactions and ensure they had the optimal business structure in place to achieve their Big Picture. 

Following the General Election result which gave the Conservatives a decisive majority, it seems that some of the uncertainty has now been eliminated. The Withdrawal Agreement will almost certainly be passed so that the UK leaves the EU by 31 January 2020. However, the precise terms of the trading relationship that is still to be negotiated with the EU is still unclear. Although the Government has stated they would like to conclude the negotiations of the trading relationship with the EU by 31 December 2020, it is far from certain that this is achievable.

At Creaseys we are already seeing some of our clients prepared to proceed with implementing reorganisation plans which had previously been ‘put on hold’ pending the outcome of the General Election and the consequent impact on Brexit. Although the uncertainty hasn’t been completely taken away, they now have more confidence on the general ‘direction of travel’ on Brexit and how this will impact their businesses and their tax position. We are expecting a Budget in early Spring which will provide further clarity to our clients on the Government’s economic and taxation policies.

We expect that transactions delayed by Brexit uncertainty may well proceed in the first few weeks of 2020. Whether these are acquisitions, disposals or reorganisations, we will be working closely with our clients to structure them tax efficiently from both a personal and business perspective to ensure they meet their commercial objectives.  

If you have delayed proceeding with a particular plan of action because of recent uncertainties, please get in touch with us to discover whether it is now a good time to proceed.

We will continue to keep you updated on any developments. If you would like to discover how we can help you, please call your usual Creaseys contact on 01892 546 546.