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How to Please Your Sweethearts When You Are Divorcing: The UK Government’s Ability to Offer Incentives to Foreign Investors After Brexit


Simon Hirsbrunner


This work is distributed under the Creative Commons Licence Attribution 4.0 International (CC BY 4.0).

This article explores the possible routes the UK government may take to continue attracting inward investment once it ceases to be a member of the European Union. In particular, it examines the compatibility of such measures with EU State aid and WTO anti-subsidy rules. By drawing on past experience and current bilateral relationships with third countries the article concludes that, even after “Brexit”, the UK will likely be subject to State aid control. In light of the current global trend to combat tax avoidance, the UK may also find itself subject to stringent rules on corporation tax, narrowing its remit for attracting investment through advantageous tax measures.

Simon Hirsbrunner, Partner at Steptoe & Johnson LLP, Brussels. The author would like to thank Alice Lauterjung, LLB (University of Warwick) for her invaluable contribution to this article. DOI: 10.21552/estal/2016/4/3


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