The EU is responsible for loads of rules and regulations that directly impact our finances. Here are the main ones to watch out for once we Brexit.
After 43 years, Britain has voted to leave the European Union and go it alone.
With many of the financial rules and regulations that apply in the UK coming from the EU, it could be a messy divorce.
These all have legal force in the UK for now, but after Brexit it will be for the Government to decide what stays, changes or goes.
Here are the key areas that could change and impact your finances once we Brexit.
Mobile roaming charges
In October 2015 the European Parliament voted to scrap roaming charges when travelling in the EU by June 2017.
This would mean mobile users would pay the same price for calls, texts and mobile data as they would at home wherever they were in the European Union.
These changes were being phased out in and since April 2016 roaming charges have been capped.
However, as the changes are being introduced under an EU regulation rather than a directive, they haven’t been specifically incorporated into UK law and so will no longer apply once Britain leaves the EU.
It’s up to the Government whether it chooses to carry on with the reform.
Insurance
Gender-neutral pricing on insurance products which took effect in December 2012 under the EU Gender Directive could also be called into question after Brexit.
The ruling prevents insurance companies from taking gender into account when underwriting financial products like car insurance and life insurance.
The AA says the directive could in theory be reversed following an exit from the EU, which would mean a return to higher prices for men compared to women. Traditionally men are seen as riskier than women on car insurance for example.
However, the AA says the reversal is unlikely given that gender equality is now ‘firmly entrenched in the market’ and it would be a ‘costly exercise to back track.’
The EU Motor Insurance Directive, which guarantees that drivers are insured throughout Europe may no longer apply when we Brexit, which could mean the cost of your cover goes up.
Find a better deal on car insurance
Flight delay compensation
Currently when you’re delayed for more than three hours on any airline flying out of the EU or on EU airlines flying into the EU and the airline is at fault you can get fixed compensation of at least €250 (£212) thanks to EU regulation 261/2004.
However, as this is a regulation and not a directive, it’s likely that when we Brexit this compensation rule won’t apply for UK citizens.
So the UK would need to launch its own flight delay legislation to fill the gap.
However, until we leave the EU there will be no change to the rules so make sure you get your claim in. Read how to claim compensation for delayed and cancelled flights for more.
VAT
In the EU, taxes like VAT have to be broadly aligned across all 28 countries to avoid distorting competition across borders.
This means the standard rate of VAT must be at least 15% and the reduced rate 5%. The EU rules prevent governments having the freedom to decide when there should be no VAT on certain items.
This has meant that the UK Government has been powerless to scrap VAT on things like energy bills and sanitary products, although in March it did manage to get permission to scrap the so called 'tampon tax'.
After the UK leaves the EU it will have more power over VAT laws, so theoretically other things like energy may get zero-rated, which means households will pay less.
Read: From tampons to ebooks: the strangest things we do and don't pay VAT on in the UK.
Mortgages
The EU Mortgage Credit Directive is a piece of legislation meant to bring mortgage lending in line across all EU member states and came into force in March 2016.
However, in order to prepare for it the UK Mortgage Market Review introduced by the Financial Conduct Authority (FCA) in 2014 included provisions to fit in with the directive.
This included the mortgage affordability check, which looks at whether you can afford what you borrow at the current rate as well as if rates were to rise.
However, while these rules are good to ensure first-time buyers only take on debt they can afford they’ve had a negative effect on those remortgaging.
Those staying in the same house and not borrowing more but just switching to a better offer have been told they can’t afford a cheaper deal based on the new criteria.
The UK will no longer be bound by this directive once it leaves the EU, so in theory the Government could instruct the FCA to adjust the rules and allow providers to be more flexible on the issue for remortgagers.
Compare mortgages with loveMONEY
Credit cards
The European Parliament voted to cap charges paid by retailers to card firms when debit and credit cards are used to pay for purchases.
The Interchange Fee Cap (IFC) is set at of 0.2% of the value of the transaction on debit cards and 0.3% of the value of the transaction for credit cards.
The move which was adopted in the UK in December 2015 has led to many providers scaling back the perks they offer on credit cards like loyalty points and cashback in order to cope with the cut.
Tesco Bank, NatWest and RBS have all cited the cap as the main reason for reducing the perks on some of their deals.
Once the UK leaves the EU it no longer has to stick to these rules. So the Government could potentially change them - or just keep them the same.
From interest-free purchases to cashback: find a new credit card deal
Consumer rights
The EU Consumer Rights Directive was implemented in the UK through the Consumer Rights Act 2015 in October last year.
This piece of policy is responsible for rules such as the 14-day consumer right of withdrawal for many purchases of goods and services including digital content and protection from hidden or excessive charges like helpline call costs and card fees.
Once we leave the EU whether we keep these extra rights for consumers will depend on what the Government thinks is important. However, it’s worth pointing out that we did have pretty good consumer protection laws prior to this so they are unlikely to dramatically shift.
More on Brexit:
Money winners and losers of the EU referendum