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Purchase of own shares using a multiple completion contract

18 May 2021 / Peter Rayney
Issue: 4792 / Categories: Comment & Analysis
If you’re looking for a way out

Key points

  • A multiple completion contract can be completed in several stages.
  • Business asset disposal relief may be available as long as various conditions are met.
  • The 30% connection test excludes adult children.
  • It is advisable to obtain advance clearance from HMRC.

On a rare sunny afternoon in February 2021 Jennifer Eccles (Jen) the managing director of J E Logistics Ltd (JEL) was reminiscing over her life in the haulage and logistics business. She was waiting in her hosted Zoom room to greet the company’s accountant Jimmy Mac.

JEL had fared better than most businesses during the Covid-19 pandemic. In fact it had been seriously stretched and had recently posted an unprecedented increase in its 2020 trading profits.

Jen had formed JEL in June 1998 subscribing for all the company’s 1 000 £1 ordinary shares. She had recently celebrated her 66th birthday and...

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