Treasury shares following a share buy back

Copyright © 2025 LexisNexis
Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Treasury shares following a share buy back

Copyright © 2025 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 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. Such shares are known as ‘treasury shares’.

It is unusual for the typical UK private company to have treasury shares because their use is limited. One example

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+™
  • 06 Nov 2025 12:00

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

Popular Articles

Trusts and Inheritance Tax

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more
Corporation Tax

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Read more Read more