Contact
Abbey’s experienced experts can make an initial assessment of feasibility based on a telephone conversation.

Submission
To obtain indicative terms we will need:
• An overview of the tax issue with details of the proposed transaction or restructuring scheme.
• Copies of any correspondence with the tax authorities about the issue.
• Copies of any relevant legal or accounting opinions.
• A copy, if applicable, of the Vendor's indemnity in a Purchase and Sale Agreement.

Initial Indication
When preliminary negotiations have been made with underwriters we will provide an indication of terms, including level of premium, the level of any excess and, if appropriate, insurer’s due diligence costs.

Underwriting Due Diligence
Abbey Tax will review the information and prepare the risk assessment which will lead to definite terms being offered or not, as the case may be.

Placement Completion
If you accept the terms, instructions will be given to complete the placement that will involve the production of policy wording. The premiums become payable when cover begins and finalised documentation is released.

Capacity
Capacity is currently in excess of £50 million of “tax risk”.
“Tax risk” means the amount of additional tax that could become payable in the event of an adverse ruling or settlement of any dispute with the tax authorities and should include, where applicable, the cost of defending any litigation that may be involved

Premiums
Premiums for Tax Indemnity Insurance can be between 2% - 20% of the “tax risk”. While every transaction raises unique issues and the insurance structure is determined case by case, the factors in setting premiums include:

• The nature of the transaction causing the tax issue.
• The taxpayer's particular facts, representations made and insurance limit required.
• Relative strength and legal basis of the tax position taken.
• The structure of the insurance programme.