Citywealth Leaders List, 60 seconds interview – Tom Hughes, Gallagher
This week’s 60 seconds Citywealth Leaders List interview is dedicated to Tom Hughes, Director of Tax Insurance at Gallagher. He is Director in Gallagher’s Tax Insurance team, discusses his transition from Big Four tax adviser to specialist insurance adviser, and explains how tailored tax insurance solutions can help clients mitigate complex risks, maximise value creation and deliver greater certainty.
Tell Citywealth readers a bit about your role.
In essence, I help clients – be they corporates, private capital funds or private individuals – navigate complex tax issues over c.£500k by using insurance as a specialist risk management tool. Most of my time is spent working with clients and their advisers to assess areas of tax uncertainty and structure bespoke insurance solutions that provide certainty and protect against downside risk.
In an increasingly complex and evolving tax landscape, tax insurance can provide certainty where there may be differing interpretations of the law, helping clients manage their risks and proceed with transactions, succession planning and wealth structuring decisions with greater confidence.
In your career you pivoted from being a tax adviser to the tax insurance industry, what made you make the transition?
Although I really enjoyed my time as a tax adviser, and it gave me an excellent technical foundation, I was attracted to the insurance market because it offered the opportunity to combine technical tax expertise with a more commercial and entrepreneurial role. It also gave me the chance to help raise awareness of a rapidly evolving product that can deliver real value to clients facing complex tax risks.
What is a common misconception in your industry?
That tax insurance is the same as warranties & indemnities (W&I) insurance! This is a common misconception we encounter. The easiest way to articulate the difference is that W&I insurance is intended to cover primarily unknown risks as part of a transaction, where liabilities can emerge post-deal, whereas standalone tax insurance policies are designed to cover any known tax risks.
Another common misconception is that standalone tax insurance policies are only available as part of a transaction. While this was indeed an original and primary use – for example, to remove the need for a commercial decision to be made as to whether to price chip, leave an amount in escrow, seek a specific indemnity or for the buyer to inherit the risk – the product has evolved. Now it can be used for almost any identified tax risk, whether historic or prospective, regardless of whether a transaction is taking place (retrospectively or prospectively) and regardless of whether there is a transaction in mind.
This is particularly relevant in the private client space, where tax insurance is increasingly utilised in connection with succession planning, trust matters, family investment structures, income categorisation, domicile and residence issues, and business reorganisations. By providing protection against the financial consequences of a challenge from a tax authority, tax insurance can offer clients and their advisers greater certainty, enabling them to implement planning strategies and make important decisions with confidence.
Are there any top-of-mind themes for you or your clients?
As the market has become more established with greater insurer choice, increasing competition has naturally driven product development and expansion, meaning the appetite and opportunity to insure tax risks is greater than ever. We are seeing growing awareness among clients and advisers of tax insurance as a multi-faceted solution, with the product now employed across a much broader range of scenarios than was the case even a few years ago.
For my clients, the key themes continue to be obtaining certainty around historic tax positions, facilitating transactions, and supporting succession and wealth planning where there is an element of tax uncertainty – although these are far from the only use cases. In short, we seek to maximise value creation for clients both within the deal environment and beyond.
Against a backdrop of increasing tax complexity and scrutiny from tax authorities, clients are looking for practical solutions that allow them to move forward with confidence while managing potential downside risk.
What is your proudest professional achievement?
Qualifying as a Chartered Accountant. This has opened countless doors throughout my career and provided me with a strong grounding in accounting, tax and corporate finance, which remains invaluable in my current role. Tax insurance often sits at the intersection of technical tax analysis, commercial decision-making and risk assessment, so being able to understand complex issues in the context of a client’s wider needs, challenges and opportunities is a real advantage.
What do you consider to be the most important attributes in your role?
Strong tax technical expertise, commercial acumen and the ability to build trusted relationships. A deep understanding of tax is essential when assessing what are invariably complex risks and developing practical solutions to manage and mitigate them. In turn this enables productive conversations with both insurers and advisers, while commercial acuity helps ensure solutions are fully aligned with clients’ wider objectives. Together, these qualities enable me to build trusted relationships and deliver the best outcomes for clients and their advisers.
Where was the last place you travelled to for work or pleasure?
While I’m spending a considerable amount of time in different regions of the UK spreading awareness of tax insurance as a product, my most recent travel overseas was to Bermuda for a family holiday. While many people immediately associate Bermuda with the insurance industry, I was there entirely for pleasure rather than work and would highly recommend a visit, not least for the Rum Swizzles.
How do you relax after a long day?
For me, relaxing means switching off from work, walking my dog and enjoying good food. I’m also a keen MMA and Brazilian jiu-jitsu practitioner, which often surprises people I work with. It’s one of the few activities that completely takes my mind away from emails and phone calls and allows me to properly switch off.
Key Takeaways
- Tom Hughes, Director of Tax Insurance at Gallagher, helps clients navigate complex tax issues using tailored insurance solutions.
- He transitioned from a tax adviser to tax insurance for a blend of technical expertise and commercial opportunity.
- Hughes promotes tax insurance as a way to manage known tax risks, not just as part of transactions but for individual tax planning.
- Key themes for clients include uncertainty around historic tax positions and supporting wealth planning amidst increased tax scrutiny.
- His background as a Chartered Accountant enhances his ability to manage complex tax risks and build trusted client relationships.
Subscribe to the Citywealth Weekly Newsletter to learn more about Private Wealth Management.
Read more:
Italy update | Citywealth News
News release: Citywealth’s Top 100 trust litigators and polymaths | Citywealth News
Top 100 International Private Client Litigation Lawyers 2022 | Citywealth News
Top 100 International Private Client Litigation Lawyers 2023 | Citywealth Top List
Top 100 Trust Litigators for High-Net-Worth Families – Citywealth
Citywealth IFC Awards recommended names shortlisted candidates
Top 30 Monaco Advisors and Managers 2026
Top 30 USA Domestic Trust Jurisdiction Advisers 2026
Top 75 California Advisors and Managers 2026
Citywealth Leaders List, 60 seconds interview – David R. Fullmer, WR Immigration
This week's 60 seconds Citywealth Leaders List interview is dedicated to David R. Fullmer, Partner at WR Immigration. He helps U.S. and international companies navigate employment-based immigration, global talent strategies, compliance, and I-9 audits.
Citywealth Leaders List, 60 seconds interview – Rosalyn Breedy, Breedy Henderson
This week's 60 seconds Citywealth Leaders List interview is dedicated to Rosalyn Breedy, Private Wealth Lawyer at Breedy Henderson. She is a corporate, funds and financial services lawyer and founder of Breedy Henderson, advising family offices, entrepreneurs, fund managers and private wealth clients on corporate, regulatory and governance matters in the UK and internationally.