Britain and the EU have reached an agreement on a Brexit divorce bill, which is likely to finally total around 50 billion euros (Dh217bn), British newspapers reported on Tuesday, potentially heralding a breakthrough in the negotiations.
A deal on the bill would signal that London and Brussels are moving much closer to an agreement at a December 14-15 summit to advance to a new phase in their negotiations and discuss their post-Brexit trade relationship.
The Daily Telegraph newspaper said an agreement in principle had been reached over the EU's demand for a 60 billion euro financial settlement. It said the final Brexit bill, which was deliberately being left open to interpretation, would be between 45 and 55 billion euros.
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A government official cast doubt on the reported numbers, saying: "I do not recognise this account of the negotiations".
The Financial Times said Britain had agreed to assume EU liabilities worth up to 100 billion euros, but said net payments over many decades could fall to less than half that amount.
The European Commission declined to comment on the reports.
Britain's Brexit ministry said "intensive talks" were continuing to take place in Brussels and the two sides were trying to find a way to "build on recent momentum in the talks" to take them to the next stage.
Sterling rallied around 1 percent against the U.S. dollar as investors took the reports as a sign that the risk of Britain leaving the EU without a deal, which is widely seen as damaging to the economy, had diminished.
The two sides already believe they are quite close on agreeing the scope of rights for expatriate citizens in Britain and on the continent.
The third key issue for moving to Phase Two, an outline agreement on how to avoid the new EU-UK land border disrupting trade and peace in Northern Ireland, remains a potential stumbling block.
British Prime Minister Theresa May is due to meet President of the European Commission Jean-Claude Juncker and the EU's chief Brexit negotiator Michel Barnier on Monday.
The EU says any British move needs to come by around that date if leaders at the December 14-15 summit are to be able to endorse a move to discussions on future trade relations .
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Jawab Iteiqal
Director: Mohamed Sammy
Starring: Mohamed Ramadan, Ayad Nasaar, Mohamed Adel and Sabry Fawaz
2 stars
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Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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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
