Thursday, 30 June 2016

Thursday, 30 June 2016

The EU Referendum: what are the impacts for our clients?

Currency markets have attracted headlines - BUT - £/EUR is still trading 4% above the 9 year average and is ‘only’ back to where it was at the beginning of last year. So not all doom & gloom. It is reasonable to expect significant market and currency volatility, until markets are confident they understand what lies ahead for the UK economy.

Property - a Brexit is unlikely to impact upon the right of a UK national to own property in France, as any other nationality can already enjoy this same right today, including non EU-countries such as the many Canadian, Australian, American or other nationality buyers of French property via Allez-Français.

The main question mark is how property inheritance and taxation rules would apply. The rights of British citizens to reside in France would depend on what form of exit is implemented. If the UK opts for option one, to be an EEA member as Iceland, Norway and Lichtenstein are, UK nationals would still be entitled to live and work in the EU, with certain restrictions to some rights and social benefits.

Two separate credit rating agencies have downgraded the UK’s credit rating since the news of the UK voting to leave the EU. The impact of BREXIT is likely to be stronger for the UK than here in France. The fracture of Europe is now a real possibility as other nations, including France press for their own referendum for a FREXIT. (They are even more Euro sceptical than the UK according to polls).

What has surprised us immediately post the vote, is quite how determined many UK clients are now, "more than ever" to quit the UK and move across the Channel.

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