Day: August 16, 2019

If, as our new government intends, we leave the EU after 31 October 2019, with or without a deal, what changes will drivers and travellers from the UK be likely to face when they cross the channel after this date?

Bus and coach drivers

According to the latest updates on the Gov.uk website bus and coach drivers will need to consider the following:

• You may need an international driving permit (IDP) if you drive in certain EU countries. You can get an IDP at the Post Office (Present cost is £5.50; you need to be a GB or Northern Ireland resident and be 18 or over).

• Drivers will still need a Driver Certificate of Professional Competence (CPC) qualification and maintain their periodic training obligations to drive in the UK. Note: the EU will not recognise the UK CPC qualifications after Brexit.

• To work for an EU company after Brexit consider exchanging your UK Driver CPC for an EU Driver CPC.

The above points are just a sample of the possible issues that drivers and coach companies will need to consider. We recommend that affected companies undertake a thorough risk assessment to make sure that red-tape does not interfere with their scheduled journeys to the EU after the 31 October deadline.

Insurance and road accidents

A ‘green card’ is proof you have motor insurance cover when driving abroad. You will need to carry one for the vehicle you are driving if there is a no-deal Brexit.

You will need to carry multiple green cards if:

• your vehicle is towing a trailer – you will need one for the towing vehicle and one for the trailer (you need separate trailer insurance in some countries)

• you have 2 policies covering the duration of your trip, for example, if your policy renews during the journey.

If you are involved in a road accident you may need to bring need to bring legal proceedings in the EU or EEA country against either the responsible driver or the insurer of the vehicle if there’s a no-deal Brexit. At the moment you can make a claim via a UK-based claims representative or the UK Motor Insurers’ Bureau (MIB).

You might not get compensation if the accident is caused by an uninsured driver or the driver cannot be traced. This will vary from country to country.

Health care

If you presently have a European Health Card (EHIC) this may not be valid if there is a no deal Brexit. Accordingly, additional travel insurance may be required.

VISAs

According to the European Commission proposals, you will not need a VISA for short trips after Brexit. This means you can stay for up to 90 days in any 180-day period. You may need a VISA for longer periods or to work or study in the EU.

Source: DocSafe

If you rent out all or part of your home this may create a Capital Gains Tax (CGT) charge when you sell the property.

Presently, HMRC excludes the last 18 months of your ownership – even if the property is let for this time – when assessing any CGT liability. In a draft of the Finance Bill released last month, HMRC have confirmed that this 18 month period will be reduced to 9 months from April 2020.

The exemption for disabled property owners or those in a care home will continue to be 36 months.

The draft Finance Bill also confirms a change to the letting relief rules.

Letting relief is an extra deduction you can make from any CGT payable as a result of letting your home. You can claim the lowest of the following three amounts:

1. The same amount that you can claim as private residence relief.
2. £40,000.
3. The same amount as the chargeable gain you made from letting your home.

From April 2020, you will only be able to claim this letting relief if you are in shared occupancy with the tenant.

Property owners contemplating the disposal of their home – which is or has been let for any period – may be advised to complete their sale before April 2020. In this way they will benefit from the 18 month exemption and the more flexible lettings relief.

Source: DocSafe