The EU 27 have agreed to postpone the UK’s departure from the EU until 31 January 2020 – three months after the planned departure date of 31 October. With a pre-Christmas general election on the horizon for the UK, read the timeline of developments so far.

29 October 2019, UK on track for general election on 12 December

UK Prime Minister Boris Johnson has secured an early general election scheduled for 12 December 2019. With the revised Withdrawal Agreement Bill on the backburner for now, UK political parties are preparing for an unpredictable election ahead, just weeks before the new Brexit deadline of 31 January 2020.

28 October 2019, EU agrees to three-month Brexit “flextension”

The EU 27 member states have agreed to grant the UK a three-month extension to the Brexit deadline of 31 October 2019, making the new Brexit deadline 31 January 2020.

Dubbed as the “flextension”, it provides for the UK to leave the EU earlier than 31 January 2020 if the withdrawal agreement is ratified before then.

Meanwhile, UK Prime Minister Boris Johnson’s attempts at securing a parliamentary majority to ratify the Withdrawal Agreement Bill have been foiled, as MPs have voted against his plan for a general election in early December. The Prime Minister will make a fresh attempt to pass a short bill later today to secure a general election in December.

23 October 2019, MPs back Bill, reject accelerated timetable

UK MPs voted to approve the Withdrawal Agreement Bill in principle on its second reading. However, they simultaneously rejected Prime Minister, Boris Johnson’s proposal to push the bill through Parliament within an accelerated three-day timeframe.

Taoiseach Leo Varadkar has confirmed his support for EU Council President Donald Tusk’s proposal to grant the UK an extension to the Brexit process.

22 October 2019, Meaningful vote rejected; Withdrawal Agreement Bill published

The UK Parliament’s bid to hold a ‘meaningful vote’ was rejected by the Speaker of the House, John Bercow on Monday. A ‘meaningful vote’ means that the House of Commons’ vote on a government motion to approve the Withdrawal Agreement. The UK government also published the full text of the EU Withdrawal Agreement Bill later that day.

19 October 2019, UK Prime Minister requests extension to Brexit deadline

The UK Prime Minister officially requested another Brexit extension from the EU until the end of January 2020. This is in line with the terms of the “Benn Act” passed last month to ensure that the UK government does not leave the EU without a deal. The EU is currently considering the extension, with the consent of all EU27 member states required to grant it. However, if the EU refuses to grant the UK a delay to Brexit, then the UK Parliament has until 31 October to pass a deal and the associated legislation.

19 October 2019, UK Parliament passes Letwin amendment

Upon reconvening, the UK House of Commons voted in favour of the Letwin amendment, which enabled the UK to withhold approval for the Brexit deal, until legislation to implement the deal has been passed by the government.

17 October 2019, New Brexit deal on the horizon

Following intensive negotiations, a Brexit deal was agreed upon last week between the UK government and the EU. Read a summary of the commercial elements of the deal.

Customs arrangements (Chart 1)

ROI to NI

No customs obligations apply if you move your goods from Northern Ireland to the Republic of Ireland, or vice versa, nor are there restrictions on quantities moving.

NI to Great Britain

No customs obligations apply here as NI is part of UK customs territory.

Great Britain to NI

Goods moved from Great Britain to Northern Ireland will not be subject to customs obligations unless the good is “at risk” of being moved into the EU afterwards.

In such cases, customs will be charged when goods move from Great Britain to NI, with rebates available if the goods remain in the UK and are not transmitted onwards to ROI or elsewhere in the EU.

VAT (Chart 2)

Northern Ireland will remain aligned with EU VAT laws. However, the UK will keep the VAT revenues collected in Northern Ireland. It’s important to note that the proposals set out that the UK may apply VAT exemptions and reduced rates, that are applicable in Ireland, to supplies of goods taxable in Northern Ireland. See The Brexit Deal explained on here.