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| Stamp duty on purchase of own shares |
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HMRC have previously taken the view that, where a company buys back its own shares held on an overseas branch register, the return that the company is required to send to Companies House is chargeable with stamp duty at the rate of 0.5% under the provisions of FA 1996, s. 66. This view has recently been challenged and HMRC have subsequently taken legal advice. HMRC now consider that a company’s purchase of its own shares held on an overseas branch register is relieved from stamp duty by Companies Act 2006, s. 133 (formerly paragraph 8 of Schedule 14 of the Companies Act 1985). Claims to repayment of stamp duty paid made within two years of the date of the instrument (S10 Stamp Duty Management Act 1891) may be now made by any company that has purchased its own shares held on the company’s overseas branch register. To claim a refund it will be necessary for the original return submitted to Companies House to be sent to HMRC as that instrument bears the relevant stamps which will need to be cancelled. Companies House will not release these documents direct to the company. They will however, send the documents directly to HMRC on request. The request must be made within two years of the date of the instrument. Claims should be made in writing to HMRC, and should include the following information:
The letter should be marked “Company Purchase of Own Shares held on Overseas Branch Register” and sent to: Mr J Gair HMRC will provide the claimant company with a reference number. The company should write to Companies House quoting the reference number and ask Companies House to send the original document(s) to Birmingham Stamp Office quoting the HMRC reference number and headed “Company Purchase of Own Shares held on an Overseas Branch Register”.
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Monday, 14 September 2009 | 2285 Hits |
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