Britain's EU exit: A timeline of agonising Brexit battle

From Britain's shock vote to leave the European Union in a 2016 referendum to a Christmas Eve trade deal after months of talks, Brexit has been a rocky and divisive process.

Britain becomes first nation to vote to leave the EU

In a referendum on June 23, 2016 that followed decades of arguments over Europe, Britons vote by 52 per cent to 48 per cent to become the first nation to leave the EU bloc.

Conservative leader David Cameron, who led the campaign to remain in the EU and called the vote expecting to win, resigns as prime minister the next day.

David Cameron released his autobiography last year. AFP

Theresa May takes the lead to exit Britain from the EU

Mr Cameron is replaced by Theresa May, the interior minister who also backed remaining in the EU.

Mrs May formally triggers the exit process on March 29, 2017, sending a notification letter to Brussels that gives Britain until March 29, 2019, to leave.

In mid-April the UK had just secured a second Brexit delay, and Theresa May still harboured hopes of getting her divorce deal through Parliament. By mid-June Ms May had resigned. Reuters

Britain and the EU agree a draft divorce bill

Ending more than a year of acrimonious talks, British and EU negotiators agree a draft divorce deal on November 13, 2018.

But May faces an angry backlash from her own Conservative party over its terms and MPs vote against the deal in the biggest government defeat in British parliamentary history.

Brussels refuses to re-negotiate.

EU extends Britain’s exit date

The EU agrees to delay Brexit until May 22 and then until October 31, 2019.

Theresa May resigns as prime minister

The European election defeat and parliament's rejection of her Brexit deal forces Mrs May to step down as Conservative leader on June 7.

Boris Johnson becomes prime minister

On July 23, party members choose Brexit figurehead Boris Johnson as their new leader. He becomes prime minister the next day.

MPs approve Brexit deal in principle

On October 22, British MPs approve in principle a new Brexit deal struck days earlier with the EU.

Brexit date faces delay

On October 28, EU members agree to postpone Brexit until January 31, 2020.

Mr Johnson's resounding win in a snap general election on December 12 eases his Brexit bill's passage through parliament on January 9, 2020.

MPs pass bill for divorce date

The divorce takes place on Friday, January 31.

An extendable transition period, during which much in the relationship will not change, is agreed up to December 31, 2020.

Difficult negotiations begin with Brussels

In March 2020, the EU and Britain began difficult negotiations on their future trade relationship, which are then broken off due to the coronavirus crisis.

Talks resume in April, without any notable progress on key sticking points.

Britain's Prime Minister Boris Johnson. AFP

Britain announces it doesn’t want to delay transition period

On June 12, Britain officially says it does not wish to extend its transition period beyond the end of the year.

In July, Britain and the EU agree to intensify talks with a view to meeting an October deadline for an accord, if the European and British parliaments are to have time to ratify it by the year end.

On September 8, the two sides open an eighth round of negotiations amid tensions as Mr Johnson warns that if there is no compromise by October 15 he will walk away with no deal.

Britain tries to rewrite the withdrawal agreement

To the EU's dismay, the British government the next day submits a bill to overwrite parts of the withdrawal agreement.

Negotiations pass October deadline

The October deadline comes and goes with no sign of a deal, with Johnson telling the EU there was "no point" in extending talks.

But Britain then ends days of threats to abandon the negotiations and instead agrees to redouble efforts to avert the potential economic chaos of a no-deal at the end of the year.

Britain enters into last-minute talks with the EU

Remaining key sticking points include so-called "level playing field" provisions to ensure Britain does not try to retreat from the EU's environmental or labour standards, how to arbitrate future differences, and fishing rights.

Talks extend into December, and Mr Johnson heads to Brussels to meet European Commission President Ursula von der Leyen to try to break the deadlock.

Negotiators work around the clock up to Christmas Eve to craft a legally binding text in time for parliamentary ratification on both sides of the Channel, with a deal finally struck in the afternoon.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer