Company buyback of shares

[KeithGreen]

I have a client who is the sole director and shareholder of the 3 issued shares in his small company.

The company is cash rich and very profitable. Could he sell one or two of his shares back to the company for (say) a six-figure sum to release some of the cash and take advantage of Entrepreneurs Relief?

[David Griffiths]

No, in a word.

Such a proposal would never get tax clearance from HMRC

He's not selling anything. 100% before and 100% afterwards.

[KeithGreen]

Thanks David. I guessed this would be the case.

With so may sole traders and partnerships incorporating to take advantage of Entrepreneurs Relief I just wondered if a private company re-structuring might also have some advantages.

Thanks again. I'll stick to what I know.

[jim_price]

I have heard talk of special purpose trust vehicles being created to buy shares from owner managers, in order to take advantage of the Entrepreneurs Relief.

Naturally, any such decision would have to made with regard to a myriad of other factors.