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

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  • 06 Nov 2025 12:00

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