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Buyback mountain

Phased completion can affect other shareholders’ relief

KEY POINTS

  • Share buybacks using multiple completion dates can be advantageous for vendors.
  • The disadvantage of an upfront tax payment will be outweighed by a reduced tax rate.
  • The reduced overall shareholding level can affect those with small shareholdings.
  • Examples illustrate the potential problems.
  • The importance of a properly maintained share register.

As we grow accustomed to working with the capital gains tax entrepreneurs’ relief provisions it seems that hardly a month goes by without a new practical point arising. This article highlights one matter that arose recently.

Although with the benefit of hindsight such points may appear blindingly obvious they can so easily be overlooked; consequently the matters discussed here may seem small but should not be described as nit-picking. There is...

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