Election Results 2019: What’s next for BREXIT?

With the new government being elected last week, we thought it would be a helpful to outline what this means for BREXIT:

What will happen on 31st January 2020?

  • The UK is now likely to leave the EU on 31st January 2020 with the deal that was negotiatied by Boris Johnson’s government prior to the election. However, this is still subject to government passing the Withdrawal Bill. This is now much more likely to happen given that the conservatives have a large majority in parliament, meaning they can push this withdrawal bill through.
  • However, If the withdrawal bill is not passed in time for the 31st January deadline, then a No-Deal BREXIT is still a possibility.

What happens after the 31st January 2020?

  • If the Withdrawl Bill is passed, then we leave the EU with a deal. In this scenario nothing changes until the next deadline on 31st December 2020. This period between the 31st January 2020 and the 31st December 2020 will be known as the “Transition Period”. This is the period where the new arrangements between the UK and the EU are negotiated.
  • If the Withdrawal Bill is not passed by government in time for the 31st January 2020 deadline then we leave the EU on a No-Deal basis. We are recommending to all of our customers that they still ensure they are fully prepared for this scenario. Our guide to BREXIT readiness can be found here

What happens if the new arrangements are not finalised or agreed between the UK and the EU by 31st December?

  • In this scenario, the UK will leave the EU with No-Deal in place and trade will revert to WTO (World Trade Organisation) rules.

Can the UK request an extension to the transition period?

  • Yes but this has to be completed and agreed by 1st July 2020 (source) . Due to the negotiations for the withdrawal agreement taking so long over the past few years, it is likely that an extension to the transition period will be requested. The extension requested can be up to 2 years so there is potential for the transition period to be extended to 31st December 2022. During this time, the rules under which we all operate will not change, but preparations for a no-deal will still be taking place.

To summarise, our advice is that you should still prepare for a no-deal BREXIT. If you havent done so already please visit our guide to BREXIT readiness here

Are you ready for BREXIT? Click here to read our guide on BREXIT readiness.


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