Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

New covenant

14 August 2012 / Jason Fayers , Andrew Strickland
Issue: 4366 / Categories: Comment & Analysis , Business , Income Tax
It’s time for a fresh look at deeds of indemnity and how they work, insist JASON FAYERS and ANDREW STRICKLAND


  • The tax covenant is designed to protect the business buyer.
  • Are there inconsistencies in which potential liabilities are provided for?
  • How does the covenant treat timing differences?
  • An alternative approach incorporating corresponding savings could benefit both parties.
  • The specifications of the new tax covenant.

Tax deeds of indemnity tax deeds or tax covenants – regardless of the description used for these documents they are a regular feature of corporate transactions.

A tax covenant is a covenant or promise to make payment in certain stated circumstances and it is therefore a document of some considerable power.

The simple essence of the covenant is that the buyer wishes to be protected from unexpected tax liabilities.

The protection in the document takes the form of...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon