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Tax and accounting articles

Insights from the Saymur team.

These are written by the accountants and tax advisers who deal with this work every day, so they cover the questions clients actually bring us.

· Abbas Gulamhusein

How is a share buyback taxed, and why does the treatment matter so much?

When a company buys back its own shares from a shareholder, the proceeds can be taxed in one of two completely different ways. On a large buyback the gap between them runs into hundreds of thousands of pounds. The transaction is identical either way; only the tax treatment changes. That is exactly why HMRC pays attention, and why you should too.

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