| Commentary

127 Warranties by the buyer

| Commentary

127 Warranties by the buyer

The sellers will wish to be protected from any tax liability which arises after completion in general terms (the tax liability will be defined as any arising in respect of the pre-completion period) but also arising from any actions of the buyer or the buyer’s group. For example, the target company will in all likelihood be joining a tax group, and may also be leaving a tax group (although not necessarily) and, additionally, the target company may be restricted. Tax reliefs may be withdrawn and tax charges may arise—such as chargeable gains under the Taxation

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