Markets, and the companies that operate in them, abhor uncertainty. As such, it is only natural that in an environment where currency valuation, customs and excise, rules and regulations and even access to your customer base could change from one day to the next, companies – particularly small and medium size enterprises (SMEs) – are beginning to seek other options to a UK base.
Tim Sarson, tax partner at KPMG, has spent a great deal of time and energy analysing the possible impact of Brexit on his clients, and concludes that many of them are indeed getting itchy feet in the UK.
“Brexit impacts different industries in different ways. It does look as if the UK will end up with customs or border tariffs and that makes the UK less attractive as a hub for companies who consider their UK businesses to be a European base,” he says.
42% of British businesses in a post Brexit era have more of an appetite to expand their business overseas*
*Source: Opinion Matters
Free zones present an attractive option for companies looking to relocate outside their primary jurisdiction, as they tend to offer advantageous tax regimes, helpful business setup programmes, and a ready-made community of like-minded entrepreneurs on hand to advise and to trade with.