This triggered Article 50 of the Treaty on European Union, which sets out the procedure for a member state`s exit from the Union and introduces a two-year countdown to withdrawal. Britain and the EU have started negotiations with different perspectives on the basis of the law. The UK side saw it as a payment for preferential access to the European internal market, while the EU saw it as an obligation that had previously agreed to fund the budget cycle until 2020 and its share of longer-term commitments. In December 2017, negotiators agreed on the scope of these commitments and the methods of their evaluation. This will be done after 31 March 2021, when most financial compensation is part of the annual process of approval of public expenditure by Parliament (each year, Parliament`s approval is required for most public expenditure under the provisional statement procedure). The derogations concern financial compensation resulting from customs duties and sugar duties levied by the United Kingdom on behalf of the EU. A brief Brexit briefing: the financial deal – a summary covers what the deal is and how much it could cost. The UK has started formal withdrawal negotiations by formally announcing to the European Council its intention to leave the EU. The comparison sets out the financial commitments, the calculation methodology on the part of the United Kingdom and the payment plan. The regime is part of the Withdrawal Agreement, which is a legally binding agreement setting out the negotiated conditions for the UK`s withdrawal from the EU.
The financial regime was only binding when the UK Parliament approved the Withdrawal Agreement, which was approved on 24 January 2020.  EU and UK negotiators reached an agreement on the draft Withdrawal Agreement which enabled the European Council (Article 50) to adopt, on 23 March 2018, guidelines for the framework for the future relationship between the EU and the UK. The Withdrawal Agreement sets out how the UK and the EU will settle between themselves their outstanding financial obligations arising from the UK`s participation in the EU budget as a Member State and other aspects of its EU membership. The agreement reached on these financial aspects is known during the financial agreement (the transaction). There is no definitive billing cost. The final costs for the UK will depend on future events such as future exchange rates and EU budgets. The Office for Fiscal Responsibility estimates that the net cost to the UK could be £33 billion. In June 2017, the EU drafted an 11-page position paper setting out the key principles of financial management and the methodology for calculating the commitment.
  The Withdrawal Agreement between the European Union and the United Kingdom sets out the conditions for the orderly exit of the United Kingdom from the European Union, in accordance with Article 50 of the Treaty on European Union. The conditions of the financial regime are identical both in the withdrawal agreement negotiated by Theresa May`s government and in the latest version. This overview explains what has been agreed in the financial agreement and explains how the UK government intends to implement it through EU law (Withdrawal Agreement). . . .