The importance of tax indemnity insurance

As we move into the self-assessment season, you may well be encountering issues with the potential treatment of specific transactions when completing clients’ returns. 

• Does this disposal qualify for Entrepreneurs relief?
• Is this transaction affected by TAAR?
• Is this receipt subject to Income Tax or Capital Gains Tax?
• Does this property business incorporation qualify for CGT relief?

With HMRC less willing than ever to help with rulings and advice, we are inevitability left in the air as to how HMRC will view certain disclosures and or tax return entries.

Subject to the detail of the particular issue, we may be able to remove uncertainty and protect the client’s tax position with a bespoke tax indemnity insurance policy.  Tax indemnity insurance will provide cover for tax, interest and penalties if HMRC successfully challenge an entry on your client’s self-assessment returns. 
There is more information available on our website at www.markeltax.co.uk/tax-insurance/indemnity, but we often find that a short discussion can usually determine whether a particular transaction will benefit from tax indemnity insurance.

If you or any of your colleagues would like more information about tax indemnity insurance, please contact me on 07818 530056 or at jeremy.leach@markel.com.