Company purchase of own share - Vendors tax position

[bobbyc]

I'm trying to clarify how a vendor who sell shares under a CPOS/Company buy back is taxed?

It's my understanding that if certain conditions are met. The disposal is treated as a (preferable) capital distribution rather than an income distribution in the vendor's tax return. As outlined in this article: http://www.taxationweb.co.uk/tax-articles/business-tax/company-purchase-of-own-shares.html

How does the vendor know if it's been approved and therefore what tax to pay on the disposal?
Is there a specific bit of paperwork HMRC send out for example?
Also which HMRC department deals with these applications?

I hope that all make sense and this in the best forum for the question. Please let me know if I need to provide further information.

Bob