Ben Jones, Helen Mackey and Jannine Nicholas (Eversheds Sutherland) explain how to obtain and maximise the benefits of tax risk insurance.
What is tax risk insurance?
Very simply tax risk insurance (also referred to as tax insurance or tax liability insurance) is insurance cover for specific identified tax risks.
Most advisers will be familiar with warranty and indemnity (W&I) insurance (known as representations and warranties insurance in the United States) which provides insurance cover for warranty and indemnity (or covenant) claims in connection with an M&A transaction. Instead of bringing a claim under the SPA against the seller (whose liability will often be capped at £1 on a W&I insured deal) the buyer brings a claim against the insurer under the W&I insurance policy.
W&I insurance is intended to cover unknown risks not identified as part of the buyer’s due diligence exercise. It will not generally...
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Ben Jones, Helen Mackey and Jannine Nicholas (Eversheds Sutherland) explain how to obtain and maximise the benefits of tax risk insurance.
What is tax risk insurance?
Very simply tax risk insurance (also referred to as tax insurance or tax liability insurance) is insurance cover for specific identified tax risks.
Most advisers will be familiar with warranty and indemnity (W&I) insurance (known as representations and warranties insurance in the United States) which provides insurance cover for warranty and indemnity (or covenant) claims in connection with an M&A transaction. Instead of bringing a claim under the SPA against the seller (whose liability will often be capped at £1 on a W&I insured deal) the buyer brings a claim against the insurer under the W&I insurance policy.
W&I insurance is intended to cover unknown risks not identified as part of the buyer’s due diligence exercise. It will not generally...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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