The UK's decision on 23 June 2016 to leave the EU will expectedly result in various legal changes, not least with regard to taxation.

While not much is certain at this point and a lot can and will happen between now and when the UK eventually leaves the EU, the impact of the decision from a legal standpoint depends on the terms of any agreement the UK is able to negotiate with both the EU and the individual member states. Though the changes will come about immediately, as the exit process is expected to take a minimum of two years from the time the UK formally confirms the decision, it would be wise to consider the various implications that might occur going forward.

Some of the more immediate consequences to be taken into account are that when the UK formally leaves the EU, the Parent/Subsidiary Directive (Directive 90/435/EEC), the Inter-ests/Royalties Directive (Directive 2003/49/EC), and Directive on cross-border merger (Directive 2005/56/EC) will no longer be directly applicable when dealing with companies located in the UK or in the EU from a UK perspective.

Especially when it comes to the Parent/Subsidiary and the Interests/Royalties directives the changes may have unwanted impact on the day-to-day activities of many companies. Com-panies that conduct transactions or have structures set up with entities in both the UK and the EU should be aware of these matters and be prepared to make the necessary changes, structural and otherwise.

A number of areas regarding VAT and especially custom duties are regulated on basis of EU directives that will no longer be applicable when dealing with import and export to and from the UK. As such, entities should pay ample consideration if they conduct business that involves exchange of goods or services with companies located in the UK.