Tax Liability Insurance

What does TLI cover

• The estimated quantum of the tax liability exposure (cost effective solution for tax exposures from £500k up to £1b+).
• Potential interest and penalties imposed by a tax authority.
• Costs of defending the claim, from responding to the initial enquiry up to litigation (subject to the policy excess).
• Gross up if required by local tax law.
• Policy period is typically 7 years (however can be up to 10 years).

Benefits of TLI

Pricing will vary considerably depending on the jurisdiction and the nature of the risk. We would typically expect to see the premium for majority of risks fall within 2% – 6% of the limit sought.

The BMS team has dedicated in house tax counsel that will work with our clients and their advisers to ensure that a tailored insurance solution is acquired, wherever in the world it is needed.

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