Page 26 - CPB March 21st

Unforeseen reduction of overall net equity held in the property
The basis of taxation is subject to change
Potentially subject to Inheritance tax
The monthly annuity payment may have to be reduced if Shaw Insurance’s reinsurance arrangements fail
it may not be possible for Shaw Insurance Group to offer a choice of outcomes to be chosen by your personal representatives after your death. The property may have to be sold in the open market by Shaw Insurance Group.
There is a risk of "rental voids" where the property may not be rented out for material periods. Any rental void will erode the value of the net equity available to be passed on to the beneficiaries of your Estate.
The net rental income from the property is intended to pay all of the outgoings relating to the property including but not limited to buildings insurance, interest charges, maintenance, letting and management charges. In the event that the rent should prove to be insufficient to meet such outgoings, the value of the net equity due to be transferred to your Estate will be reduced and, ultimately, Shaw Insurance Group may have to arrange the sale of the property in the open market to limit any further erosion of the net equity in the property.
The income arising from the Care Property Bond after five years depends on Shaw
Insurance recovering equivalent amounts from the third party reinsurer. In the unlikely event that such third party were to become unable to meet its financial commitments to Shaw Insurance, there is a risk that the income may have to be reduced, or the property may have to be sold. In the event of any failure of reinsurance arrangements, the income due under the Care Property Bond may be at risk.
The rate and basis of taxation may be subject to change in future.
The transfer of your property to Shaw Insurance Group is unlikely to result in a liability to Capital Gains Tax under current legislation unless Principal Private Residence relief does not apply. This may be the case if the property is a second home. The basis of taxation may be subject to change in future.
Although the income payments to a registered care home are not subject to taxation under current legislation, the basis of taxation may be subject to review and change in the future.
Your personal representatives should obtain specialist advice on Inheritance Tax arising from your Estate.