Treasury shares following a share buy back

Copyright © 2026 LexisNexis
Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Treasury shares following a share buy back

Copyright © 2026 LexisNexis
Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance
imgtext

This guidance note sets out the tax effect of a company retaining shares which it has bought back in treasury. For an overview of the purchase of own shares generally, see the Purchase of own shares ― overview guidance note.

See also Simon’s Taxes D.605.

Tax treatment of treasury shares

Any limited company is permitted to retain repurchased shares from its shareholders. Such shares are known as ‘treasury shares’.

It is unusual for the typical UK private company to have treasury shares

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 23 Jun 2026 14:20

Home/ Tolley Tax Guidance/ Corporation Tax / Selling or exiting the business

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
Trusts and Inheritance Tax

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more