Although it is expected that an agreement has been reached at some level about the general terms of VAT post Brexit, as professional advisers, we still don’t know what that looks like in real terms, so we need to be prepared for several outcomes.
We will need to accept that solutions will take longer to deliver or complete. Unfortunately, without clear guidelines and legislation in place not only will things be delayed but it will become costlier for clients.
Is this something your clients understand: that it's not you as their adviser who increases the base costs, but it’s a matter of Brexit complicating things.
VAT affects a lot of clients in a variety of circumstances.
It is not unusual for high-net-worth individuals (HNWIs) to own aircrafts, yachts, luxury assets, global property portfolios and trading operations to name but a few.
The implications of the changes will undoubtedly have an impact on most clients.
Because of this it is highly recommended that specific VAT advice is based on the particular facts of the client’s circumstances to ensure that continuing compliance is maintained.
Retirement
Pensions are another interesting scenario we need to plan for.
The world is global in terms of where we buy, live and travel but remains quite parochial in terms of how we are taxed and what we can do with our pensions, depending on the different jurisdictions we live in and where we hold assets.
We need to ensure that pension advice relates to the individual, their situation, where they live - and remains current.
Clients need to understand that if they do move to different jurisdictions this may have an impact on their pension and how their world-wide assets will be treated.
One only needs to look at how the US treats worldwide assets to understand that it is vital everyone has the right advice for their own situation.
Again, this could be time consuming and costly when we are moving into a new world where no real regulations have been agreed or communicated (as it may involve alternative views being considered until we know what the new post-Brexit regulations look like).
Communications
How we communicate with our clients and the intermediaries we work with will become more important than ever.
We should increase our contact with our clients to ensure they are up to date with the changes as well as being clear about the possibilities and issues they may have to face as part of their financial planning.
Global jurisdictions
