Tax indemnity insurance is a specialist product designed to indemnify the insured for any additional tax that becomes due following a business sale or restructure.

At present, this insurance is most relevant in mergers and acquisitions where the parties are unable to satisfactorily allocate the tax risks between themselves.

This can result in deadlock so a key selling point of the product is its ability to facilitate the completion of transactions that might otherwise flounder.

This could apply, for example, if a vendor is not prepared to indemnify the purchaser against an unfavourable tax outcome.

Tax indemnity insurance can assist in a number of tax scenarios and not just for mergers and acquisitions. It has been seen as a possible solution to address uncertainty in a number of different cases:
  • eligibility to Entrepreneurs Relief
  • inheritance tax on a trust
  • employee share schemes
  • status of workers
For further information regarding tax indemnity insurance please contact a member of our team today on 0345 223 2727 or via email at marketing@abbeytax.co.uk.