You will also understand from this why Theresa May is going to have to invoke article 50 quite soon, and what her #1 goal will be - to keep Britain inside the EU TP system. As I pointed out on my first post on this thread, without being inside the EU TP system (or a customised version of it), you are not only useless to MNCs, but you are toxic. MNCs will be forced to leave London to re-base in a EU country, where they can get full tax relief on their London costs.
George Osborne was well on his way to making London a Dublin Mk 2. The Brits are used to financial engineering (IOM, Jersey Trusts, PM using BVI) and have bigger hungrier law and tax firms in London. It was the ultimate irony after decades of whining about the EU, an arch-Tory like Osborne (proclaimed Thatcher devotee), suddenly “saw the light” and wanted to remain.
However, as we will see from Margrethe Vestager’s report, the EU now realise the trick going on with US MNCs avoiding all EU taxes. The UK have little chance of getting full access to the EU TP system. Best case is that they will get a separate tax treaty bristling with protections around IP re-charging (a draft of the CCCTB initiative), which will kill London as an EU TP hub.
The final “spin” that London will still be the hub, but with smaller local EU offices for pass-porting into the EU is a fantasy - London will be toxic for MNCs are they won’t be able to offset costs (and in addition, the main reason to have “jobs” in an EU TP hub like Ireland or the UK is to bolster the “economic” justification behind the IP; when your ability to charge out the IP goes, so does the justification for the jobs). I would say that Vestager’s report was a shock in Whitehall.