I live in the United Kingdom and pay tax in the Netherlands. How will Brexit affect me?

If there is a deal between the EU and the UK, nothing will change for you during the transition period, i.e. until 31 December 2020. If there is no deal, several tax arrangements will cease to apply. The government therefore plans to introduce transitional tax arrangements covering the whole of 2019.

If there is a deal between the EU and the UK

Nothing will change for you during the agreed transition period, i.e. until 31 December 2020. During this period, all current EU agreements and rules will still apply to the UK. So you will continue to be treated the same way for tax purposes. It is not clear yet what rules will apply after the transition period. The most likely scenario is that the UK will then be classed as a third (i.e. non-EU) country, which means that some tax arrangements will no longer apply.

If there is no deal between the EU and the UK

If there is no deal, the UK will become a third country and you will be treated differently for tax purposes. For example, people who live in the UK and pay tax in the Netherlands will no longer be entitled to tax credits and certain deductible items, such as mortgage interest relief. This is because it makes a difference for some tax arrangements whether you live in an EU country or outside the EU.

So the government plans to introduce transitional tax arrangements covering the whole of 2019. This means that, in the event of ‘no deal’, the tax authorities will act in 2019 as if the UK has not yet left the EU. These transitional tax arrangements will allow individuals and businesses more time to prepare for the new situation and nothing will change for you in 2019.

Ministry responsible