CTM17570 | Distributions: purchase of own shares: special treatment for unquoted companies
From HM Revenue & Customs · Company Taxation Manual
In certain circumstances, provides that the distributions legislation does not apply to a payment made by an unquoted company, see , on redeeming or purchasing its own shares.
The effect is that the vendor is treated as receiving a capital receipt. However, if the vendor is a share dealer the receipt will still be trading income.
Clearance applications under are the responsibility of the Clearance and Counteraction Team, see below. The clearance procedure is intended to help companies but is not a statutory requirement.
Where a person claims that applies but there is apparently no clearance notice officers should contact the Clearance and Counteraction Team.
Advance Clearance
A company proposing to make such a payment may ask HMRC to confirm either that will apply, or that it will not apply. SP2/82 explains the procedure to be followed. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Public contact details are available at http://www.hmrc.gov.uk/cap/index.htm.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Clearance applications under this and other provisions may be combined. These include () and () - company reconstructions; () - transactions in securities; and () - demergers.
They should where appropriate be forwarded to the Clearance and Counteraction Team together.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)