The Taxation (Post-Transition Period) Bill implements key aspects of the Northern Ireland Protocol in UK legislation, providing legal clarity for how customs, VAT, and excise duty will be dealt with after the end of the transition period.

The Northern Ireland Protocol requires that the UK introduces a framework for charges for customs, VAT and excise after the end of the transition period on 31 December.

The Taxation Bill creates the legal framework for those charges, aiming to minimise the practical changes for traders to ensure the efficient flow of goods within the United Kingdom, and on the island of Ireland. Customs charges will only apply to goods arriving in Northern Ireland – from both Great Britain and countries outside of the EU – if they are ‘at risk’ of moving into the EU.

The Bill will also ensure that EU goods imported into Northern Ireland from Ireland are not subject to customs duties or processes. It will also ensure the UK’s customs regime applies for goods moving from Northern Ireland to Great Britain if those goods do not qualify for unfettered access.

This Bill also sets out the VAT and excise duty rules that will apply between Great Britain and Northern Ireland.

This Bill delivers on the UK government’s commitment to upholding the Good Friday Agreement, ensuring trade can continue in line with the agreement reached in the Northern Ireland Protocol.

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Linda Casey has over 10 year work experience in accounting and covers UK news on audit, accounting and taxation.

 

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