Introduction to this document

Purchase of own shares reporting letter

Regardless of whether you have applied for advance clearance, where capital treatment has been applied to a share buy-back, you must report the transaction to HMRC.

Reporting to HMRC

Once a share buy-back has taken place and capital treatment has been applied, the company is required to make a return of information to HMRC within 60 days. There is no HMRC form to complete for this, it simply needs to be a letter addressed to the local office - i.e. the office that deals with the corporation tax affairs of the company. This must give details of the payment and the reasons for treating the transaction as capital rather than a distribution.