If you are already experienced with tax insurance, please select:
A tax liability insurance policy gives an indemnity to the policyholder for an identified tax risk.
Tax authorities have more information about taxpayers than ever before and are increasingly becoming more challenging, whilst the tax environment is both politicised and complex. Revenue collection will be in sharp focus as governments look to recover from the coronavirus pandemic. This means that clients need more comfort around tax risk.
Tax insurance helps by offering cover for an identified tax event allowing a taxpayer to reduce or eliminate a tax exposure. The insurance can be used very broadly to cover any financial loss triggered by a ‘tax event’ and provides certainty regarding the interpretation of tax law.
Without tax insurance a transaction may stall or abort, but a tax policy can be used to facilitate activity by mitigating risk. The policyholder may be a buyer getting comfortable with a risk in the target group, a business dealing with an operational risk (e.g. VAT/GST), a fund dealing with a risk in its investment structure, or a seller seeking peace of mind so that they can spend their sale proceeds.
Provided that we agree with the legal position to be insured and are comfortable that the risk of a successful tax authority challenge is sufficiently ‘low’ for our appetite, Brockwell can provide certainty with a tax policy.
Our Team particularly specialises in risks relating to M&A, Institutions & Funds, and Personal Tax. Our team is led by Richard Taylor-Whiteway who is ‘Top Recommended’ in the Spear’s 500 index for insurance.
See the FAQs below for further information.
any financial loss triggered by a ‘tax event’
Limit of Liability
up to £45m (or local equivalent)
typically £85,000 (or equivalent) excluding applicable taxes
no restrictions except pure USA risk (see FAQs below)
unlike some insurers we can insure individuals as well as corporates
up to a maximum of 7 years
defence costs only
we have both legal and accounting expertise
See the FAQs below for further information.
Our Team are tax insurance experts and their experience with underwriting complex international tax risks means that you are in safe hands with Brockwell. Our in-house tax law and accounting expertise allows us to assist clients with a broad range of risks, whilst our transactional focus means that we are very agile.
We understand that tax problems can be commercially restricting and anxiety provoking, but we offer a premium service to clients which ensures that they achieve peace of mind promptly.
Our clients need a quick, clear, and reliable service without execution risk and with the sector expertise to propose commercially workable insurance solutions – our Team are experts in providing tax insurance solutions for Institutions & Funds, in an M&A context, or to individuals for Personal Tax. Our global network of top-tier tax advisers are highly responsive and know what is required to provide a seamless tax insurance solution.
See About Us for more information.
Tax liability insurance will, as a result of exclusions, not typically offer cover for:
In order to underwrite the legal position we rely on certain facts as represented to us in the policy (unless these can be sufficiently evidenced).
change in law
We are unable to underwrite a future change in law which affects the position insured. However, in limited circumstances it may be possible to offer a policy insuring against a specific change.
As it is within the control of the policyholder, we do not underwrite the implementation of a transaction or tax administration (e.g. failure to follow filing or disclosure requirements).
deliberate non-compliance with certain conduct provisions
This mainly protects against moral hazard. For example, if an insured wilfully triggers or increases the risk then we do not offer cover.
We cannot offer insurance to the extent arising from fraud, tax evasion or intentional unlawful behaviour.
Tax insurance can be used to cover any type of tax risk. However, we will not offer insurance in the following contexts:
where we do not consider the risk of a successful tax authority challenge to be ‘low’
These are outside of our risk appetite. Some other insurers will offer cover for such risks at a commensurately higher premium than we typically charge.
manifestly incorrect or indefensible tax positions
If the tax position to be insured relates to an as yet unchallenged liability or where there is insufficient information to defend a position then we cannot offer cover.
penalties arising from non-filing
We are not able to offer cover for errors in tax administration.
the relevant jurisdiction does not apply the rule of law or has an unstable court system
We require a level of legal stability in order to get comfortable.
If the intention for seeking a policy is to facilitate behaviour by the insured person that increases the risk then we cannot offer cover.
intentional tax avoidance/evasion or marketed schemes
We are not willing/able to cover these.
Unlike some insurers we will insure risks arising in the future or arising on an ongoing basis.
Please see our Risk Appetite for further information about what cover we can and cannot offer.