I have a Tap Holder similar to that shown, but have never used it. It holds the flats of the tap, and limits the torque by means of a fibre washer which acts as a clutch plate.
My favoured method is a shop made holder for ER 25 collets, (gripping the shank of the Tap), which slides on an arbor held in the tailstock, just like a tailstock Die Holder. The Holder / Arbor fit was deliberately made a little slack to allow some "float".
Since few of my Taps are larger than 1/2" or 13mm, 13 -12mm is the largest ER collet used , so far.
The body is knurled so that it can be held, for smaller taps, and tapped for an anti rotation stud that rests against the edge of the front fourway toolpost, for larger Taps.
Having a V F D, the "jog" facility is used, to allow an instant STOP if anything looks to be going wrong.
If anything hangs up, or the end of the drilling is reached, the Tap slips in the ER collet.
So far, no broken taps (even ME40 or small BA) have resulted, although a few larger, deeper, tappings have had to be finished by hand., when the Tap slipped despite the Collet being tightened hard.
Howard