Trevor Johnson

TREVOR JOHNSON relates how a share buy-back went wrong, but all was not lost.

IN TAXATION OF 25 July 2002, Martin Dawson wrote about share buy-backs and drew attention to the company law requirements which have to be satisfied in order for them to be lawful. Murphy's Law says if it can go wrong, it will go wrong and, if the tax rules are not satisfied, the chances are that the company law requirements are not satisfied either. However, there may be times when Murphy comes to the rescue.

The villa owned by the chairman of a company caused potential problems. TREVOR JOHNSON explains how they were overcome.