If a company shareholder wants to exit a business due to a dispute, retirement or to pursue other Parrot-Body-Imageopportunities a company purchase of own shares is always a worthwhile consideration.

The normal treatment of a company purchase of own shares from an individual is that the proceeds are taxed as a distribution in the hands of the exiting shareholder.

However, if certain key tests are met the monies received are treated as capital.  This can be a huge advantage where the shareholder meets the conditions for entrepreneurs’ relief as he will suffer capital gains tax at only 10%.

Structuring a company purchase of own shares so to meet the criteria for capital treatment can often be difficult and there are numerous pitfalls associated with mishandling this situation.

Case Study: Company purchase of own shares

Where a company shareholder wants to exit the business due to a dispute, retirement or to pursue other opportunities, a company purchase of own shares is always a worthwhile consideration.

Read case study

Our team at Bedrock has significant experience advising on all aspects of company purchases of own shares and has a 100% track record in obtain clearances even in difficult or complex circumstances.

 

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Call us on 0115 778 8533 for a free consultation.

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