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22 January 2013
Issue: 4387 / Categories: Forum & Feedback , Companies
The owner of 25% of a trading company retired and HMRC gave clearances under CTA 2010, s 1044 for a company purchase of own shares to be treated as a capital transaction. The ex-shareholder is now to resume employment at the same business

My client owned 25% of the shares in a UK trading company and at the beginning of 2011 he decided to retire as he was approaching his 65th birthday.

Applications were made to HMRC for the appropriate clearances under CTA 2010 s 1044 for capital treatment as to the purchase of own shares.

Clearance was obtained and in July 2011 the company duly purchased the shares back from my client who also resigned as a director of the company and took up his retirement. Regrettably our client has become bored with retirement.

In addition the company he left behind has thrived under its remaining younger directors/shareholders to the point where they have now asked him if he would be interested in coming back to assist them.

My client is more than happy to go back to work for a normal commercial salary...

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