Welcome to Financial Services: Tax Talks. For the first edition of our new quarterly newsletter, we talk about the tax issues around the disruptive force that is FinTech.
Over the past few years we have seen tremendous changes in tax law affecting the Financial Service industry, with new tax rules for carried interest, loss restrictions for banks, and recent proposed changes to interest deductibility being the tip of the iceberg.
More recently there has been great debate on what sort of Brexit we will have as continued free access to European markets will have a critical impact on UK’s allure to the sector. However, it is a great credit to the regulator that its support and encouragement of innovation has helped the UK’s FinTech sector continue to grow since the referendum.
While the progression of Brexit negotiations was at the core of Theresa May’s General Election manifesto, the election outcome has given no clarity on the direction of travel: in practice, it has added to the list of Brexit scenarios for which financial service businesses need to plan.
We are helping clients focus such discussions using scenario planning outlined in our Brexit Planning Guide. Please contact me to discuss your Brexit planning.
In this and subsequent quarterly editions we will shed light on some of the recent tax developments affecting the sector. I hope you find the articles interesting and please do contact me or the authors if you have any queries.
Nicoletta Papademetris, Tax Partner