Private Ltd Co, Share Buy Back

[SteeplejackMac]

I owe my private limited company £50k on Director Loan A/C. I brought two of the 4 shares from a former partner in '96 for £23k each. Can I do a company share buy back of those two for £46k (ie. no profit) and thereby clear the DLA down to £4k without tax implications?

Further, could I inflate the value of that purchase (as the company is now worth much more) and then have the DLA owe me money, I can then draw down, tax free? (I think I'm allowed some cap. gains tax free).

Any help much appreciated - Rich

[SteLacca]

The first thing to consider is whether or not the share buy back is actually a capital event. There's a statutory clearance procedure for company purchase of own shares, which should be followed before any action is taken.

[SteeplejackMac]

Thanks for your help SteLacca. Searching based on what you've said, this idea appears to be a total non-starter in my case, but thanks for your help.

https://www.gov.uk/government/publications/seeking-clearance-or-approval-for-a-transaction