October 14, 2019

October 14, 2019

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Brexit: No Turning Back

Article 50 Notice

Today, the United Kingdom submitted its formal notice to the European Union in order to trigger Article 50 of the Treaty on European Union (the Article 50 Notice).  This is the formal mechanism which begins the two-year process of negotiating the UK’s exit from the EU.

The UK will leave the EU by 29th March 2019 at the latest (unless all EU Member States agree unanimously to extend the negotiating period – which currently seems unlikely).

Negotiation Period

During the negotiation period, EU laws will still apply to the UK.  The UK will not participate in discussions or decisions within EU institutions relating to its own withdrawal, but will continue to participate in other EU business as normal.

The negotiations will cover matters including the trading of goods and services, immigration, financial passporting rights and a new EU-UK regulatory framework.

Matters decided in negotiations will also need to be approved by a majority of EU leaders, MEPs, and potentially also national parliaments and some regional parliaments.

In short, there is a large amount to be negotiated and approved by a significant number of organisations during a two-year period.  It is possible that there will need to be transitional arrangements for some existing arrangements while the UK and the EU continue to negotiate after the end of the two-year period.

© 2019 McDermott Will & Emery

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About this Author

James Ross, Corporate Commercial Tax Attorney, McDermott Will, Law Firm
Partner

James Ross is a partner in the law firm of McDermott Will & Emery UK LLP, based in its London office.  His practice focuses on a broad range of international and domestic corporate/commercial tax issues, including corporate restructuring, transfer pricing and thin capitalisation, double tax treaty issues, corporate and structured finance projects, mergers and acquisitions and management buyouts.

He has particular experience in advising US groups in the structuring of UK and European inbound investments and providing advice on technical issues in the context of revenue...

+44 20 7577 6953
Martin Lambe, McDermott Law Firm, Corporate Law Attorney
Associate

Martin Lambe represents sponsors, lenders, energy companies and private equity firms on a variety of energy, renewables, project finance and other commercial matters. His experience of project finance includes advising project companies, sponsors and lenders in the energy, transport, health care and defense sectors. 

Previously, Martin worked in Taiwan as a consultant to a major international engineering consortium on a high-speed rail project (the largest global construction project at the time) in respect of which his responsibilities included reviewing all project agreements and associated commercial documents.

4420-7577-3496