Following from my previous post on Gibraltar’s UK challenge, the final judgement concluded, as I hinted, that Gibraltar and the UK should be treated legally as a single member state.
The European court rejected the Gibraltar authorities case saying that whilst it was not technically part of the UK, the court regarded that the dispute between Gibraltar and the UK was a situation confined to a single member state.
The result is that the special 1% tax rate paid by Gibraltar based companies will now be replaced by the UK’s 15% point of consumption Tax. This industry analyst believe will effect 80% of the customers of Gibraltarian companies.
It will be interesting to watch what happens next for Gibraltar’s operators in the light of this new regime which is further complicated with Brexit. Will opportunities be created for other premier offshore locations or will the UK’s desired result play out with a relocation to the UK. However, the industry is very important to Gibraltar and so it remains to be seen what incentives they may come back with. Certainly interesting times a head.