Purchase of own shares clearances and reporting

By Tolley
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The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Purchase of own shares clearances and reporting
  • Clearance applications

In situations where capital treatment applies to the repurchase of a company’s own shares, it is possible to obtain advance clearance from HMRC. The same clearance procedure may also be used for a repayment or redemption of shares.

CTA 2010, s 1044

Regardless of whether advance clearance is sought, taxpayers seeking to treat amounts received from selling shares back to the company as capital must report details to HMRC within 60 days of the share buyback.

CTA 2010, s 1046

For details of the conditions for capital treatment, see the Capital treatment guidance note.

Clearance applications

An application for clearance must: