Almost half of lawyers say they are unprepared to deal with the impact of Brexit, according to new research that also sheds light on the extent to which large law firms are expecting to move jobs outside of the UK as a result of its split from the EU.

The Thomson Reuters report, Helping to understand the impact of Brexit, draws on a survey of more than 250 legal service professionals, including interviews with lawyers at firms including Allen & Overy, Baker McKenzie, Gibson Dunn & Crutcher, Pinsent Masons and HFW.

Almost half of all respondents (47%) said they were 'not well prepared' to tackle threats posed by Brexit during the next two years, while nearly two thirds (63%) agreed that Brexit represented more of a threat than an opportunity in the short term.

The research also found that 40% of lawyers at large firms are expecting their employer to relocate jobs outside of the UK during the next decade.

More than one in five (21%) of respondents said they expect more than 10% of their firm's total UK employment to be moved to non-UK offices in the coming years, including 9% who said this figure could be higher than 20%.

The analysis compares the 5% growth of the legal sector in the 18 months following the 2016 Brexit referendum against 3% for the wider UK economy, but argues that, as the fallout from Brexit starts to take effect, this will reverse. Sectors including financial services, competition and intellectual property are marked out as areas likely to experience 'high long-term disruption'.

Despite the research findings, many lawyers remain sanguine, with one partner at a large City firm commenting: "We've been preparing for Brexit for a long time. We have held internal meetings across our different practice areas and with our sector leads. And I think we are as well prepared as you would expect. We don't see any headcount reduction as being in sight or even a problem."

Another City partner believes the process could produce as many opportunities as it does challenges: "For some sectors, it will lead to more rather than less work. In a no-deal scenario, disputes work will likely increase, as will competition work as a result of the repatriation of regulations. And the Competition and Markets Authority will be busier, so it opens up a new market."

Firms started to take precautionary measures against Brexit ahead of the referendum in June 2016, amid fears that they may find it more difficult to practise EU law without lawyers registered in an EU country. This included registering lawyers in Ireland.

This summer, a Legal Week survey found that 75% of City partners favoured a second Brexit referendum.

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