Treasury shares following a share buy back

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

This guidance note sets out the tax effect of a company retaining in treasury shares which it has bought back. For an overview of the purchase of own shares see the Purchase of own shares ― overview guidance note.

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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