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 where capital treatment has been applied, the company is required to report details of the transaction 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.