Company share buyback


Free Member
Mar 30, 2020

I am a director of limited company and I received investment 3 years ago. Now, my investor is offering me to buy back their shares (investor is a foreign company) at lower price than what they paid when these shares were issued.

With this being said, can anyone please tell me what are tax implications if company buys back shares at lower than original sale price from the investor?

For example, if company issued 100 shares and received 200,000gbp for it, and now buys these shares back for 100,000gbp, what are the taxes that are involved as a result?



Free Member
  • Aug 26, 2013
    My simple advice would be, take specialist legal and tax advice to understand any potentially complex income tax pitfalls which may or may not arise here. And it may well be the other party will be claiming / offsetting for the loss in value within their own accounting and see no point in holding the shares any longer, but get some professional advice.
    Upvote 0

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