Corporation Tax

Purchase of own shares clearances and reporting

Produced by Tolley
  • 25 Jan 2022 14:31

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

  • Purchase of own shares clearances and reporting
  • Clearance applications
  • Reporting requirements

Purchase of own shares clearances and reporting

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.

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.

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

Clearance applications

An application for clearance must:

  1. be in writing

  2. include full details of the proposed share repurchase

Usually the application should be

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