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 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

Employment Tax

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

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

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

Read more Read more
Owner-Managed Businesses

First year allowances

First year allowancesFirst year allowances (FYAs) are available on the following items:•first-year relief on qualifying new main rate plant and machinery (at 100%, which is described by HMRC as ‘full expensing’) and special rate assets (at 50%) from 1 April 2023 (companies only). These FYAs were

14 Jul 2020 11:41 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2025