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Share buybacks

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Latest Tax News

Continuing duties after Walsham—limitation and the pitfalls of delay (Equitas v Sande Investments)

Continuing duties after Walsham—limitation and the pitfalls of delay (Equitas v Sande Investments)

The following Commercial news provides comprehensive and up to date legal information on Continuing duties after Walsham—limitation and the pitfalls of delay (Equitas v Sande Investments)

Tax weekly highlights—8 April 2021

Tax weekly highlights—8 April 2021

The following Tax news provides comprehensive and up to date legal information on Tax weekly highlights—8 April 2021

UT reinstates follower notice penalty (HMRC v Comtek)

UT reinstates follower notice penalty (HMRC v Comtek)

The following Private Client news provides comprehensive and up to date legal information on UT reinstates follower notice penalty (HMRC v Comtek)

Tax weekly highlights—1 April 2021

Tax weekly highlights—1 April 2021

The following Tax news provides comprehensive and up to date legal information on Tax weekly highlights—1 April 2021

Featured Tax content

What is an intangible fixed asset?

What is an intangible fixed asset?

Part 8 of the Corporation Tax Act 2009 (CTA 2009) is a specific corporation tax regime that applies exclusively to the gains and losses of intangible...

Property holding structures—direct tax treatment of a Jersey property unit trust (JPUT)

Property holding structures—direct tax treatment of a Jersey property unit trust (JPUT)

FORTHCOMING CHANGE relating to property rich collective investment vehicles and certain investors: HMRC is consulting until 16 December 2020 on draft...

SDLT—deeds of rectification

SDLT—deeds of rectification

Stamp duty land tax (SDLT) ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that...

Bank levy

Bank levy

FORTHCOMING CHANGE: HMRC is consulting (13 July to 10 August 2020) on draft regulations to provide a deduction from a UK entity’s equity and...

Practice notes

Unilateral relief for foreign tax

Unilateral relief, like double tax relief, aims to relieve double taxation. Subject to certain conditions being satisfied and specific limits,...
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9th Nov
Practice notes

Plant and machinery allowances—definition of plant and machinery

Plant and machinery allowances are the most widely used form of capital allowance. Plant and machinery is often (wrongly) interpreted as if the terms...
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Produced in partnership with Martin Wilson 12th Jan
Practice notes

VAT on composite supplies

Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...
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Produced in partnership with Martin Shah and Gary Barnett of Simmons & Simmons LLP 12th Jan
Practice notes

Why have a tax covenant?

It is market practice for a tax covenant, also known as a tax deed, to form part of the transaction documents in respect of a sale of all the shares...
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9th Nov
Practice notes

Capital reduction demergers

The reasons why a company might carry out a demerger, and the different ways in which a demerger may be structured, are described in Practice Notes:...
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Produced in partnership with Zoe Feller of Bird & Bird 12th Jan
Practice notes

Section 198 and 199 elections on transactions involving real estate

This Practice Note describes the law and practice relating to elections under section 198 or 199 of the Capital Allowances Act 2001 (CAA 2001), which...
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Produced in partnership with Martin Wilson 12th Jan
Practice notes

Schemes of reconstruction defined

This Practice Note is about the meaning of a scheme of reconstruction for tax purposes.Tax neutrality is maintained where a company (company A) enters...
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9th Nov
Practice notes

What is a tax determination?

This Practice Note explains:•what a determination in respect of direct tax (ie a direct tax determination) is•when HMRC might issue a direct tax...
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Produced in partnership with Philip Rutherford 12th Jan
Practice notes

Direct tax treatment of damages and compensation payments

Where a dispute is brought to an end by a payment of damages or compensation, whether under a court order or an out-of-court settlement agreement:•the...
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9th Nov
Practice notes

VAT treatment of damages and compensation payments

A damages or compensation payment may attract VAT. This depends on exactly what the payment is for. If it is purely compensatory, it will be outside...
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9th Nov
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Practice notes

Types of lending

Overdrafts, term loans and revolving credit facilitiesThree common types of loan facility are:•overdrafts•term loans, and•revolving credit facilities...
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9th Nov
Practice notes

EIS funds, including approved knowledge-intensive funds

The Enterprise Investment Scheme (EIS) is designed to encourage investment in smaller, higher-risk trading companies by offering a range of tax...
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9th Nov
Practice notes

Property authorised investment funds (PAIFs)—summary

The regime for property authorised investment funds (PAIFs, or as HMRC use in regulations and their published guidance, Property AIFs)) was introduced...
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Produced in partnership with Martin Shah of Simmons & Simmons LLP based on material originally written by Charles Goddard of Rosetta Tax LLP 12th Jan
Practice notes

Value shifting

The value shifting rules are anti-avoidance provisions. They are similar to the rules applying to depreciatory transactions in that they target the...
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9th Nov
Practice notes

Management buyouts—summary of tax issues for management

A management buyout, or MBO, involves the acquisition of a business by its existing management team usually with the help of private equity financing....
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9th Nov
Practice notes

Tax considerations on a loan agreement—the tax indemnity clause

This Practice Note:•explains:◦the purpose of the tax indemnity clause that is normally found in a loan agreement, and◦that the standard drafting of...
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9th Nov

Most recent Share buybacks content

Practice notes

Share buybacks—calculating the distribution and repayment of capital elements

From a shareholder’s perspective, when a company buys back its own shares, either directly or through an intermediary acting as agent for the company...
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9th Apr
Practice notes

Tax consequences of share buybacks

A limited company may buy back shares that it has in issue, provided certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is...
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9th Apr
Practice notes

Unquoted trading company share buybacks—capital treatment rules

On a share buyback that is implemented by the company directly or through an intermediary acting as agent for the company, the standard tax treatment...
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9th Apr
Q&As

On a share buyback carried out by a UK company, one would usually expect any proceeds received by a UK shareholder in excess of the subscription price (broadly speaking) to be taxed as a dividend distribution. Does the same position apply to the proceeds received by a UK shareholder on a buyback carried out by an overseas company?

The tax treatment of a UK taxpayer on a repurchase of shares by an overseas entity is not necessarily the same as that which applies where proceeds...
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15th Feb
Q&As

What are the income and capital gains tax consequences for a shareholder in a UK listed company, when those shares are bought back by the company for the same price as they were subscribed for as part of a share buyback? Is the tax treatment different for a non-UK/EU resident shareholder?

A share buyback is typically structured in one of three ways:•an intermediary (usually the company’s broker) acting as principal purchases the shares...
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15th Feb
Q&As

If a company buys back shares from two shareholders where the consideration for each is under £1,000, but for both together is more than £1,000, are they treated as two buybacks so each can fall within the 'under £1,000' stamp duty exemption, or are they treated in aggregate?

We have assumed that:•the company is incorporated in the UK•the shares are being bought back by the issuer (rather than redeemed)•there has been no...
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Produced in partnership with Kate Habershon of Morgan Lewis 15th Feb
Q&As

When does a share buyback carried out by a limited company take effect?

A private limited company will only buy back its own shares off-market pursuant to a share buyback contract, which will include provisions specifying...
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15th Feb
Q&As

Does a share buyback attract stamp duty?

Stamp duty is an ad valorem duty which applies to transfers of stock and marketable securities for consideration where the transfer is effected by a...
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Produced in partnership with Mary Ashley of Old Square Tax Chambers 8th Jan

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