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Where Taxpayers and Advisers Meet

Buying Shares In Own Business

businessmind
Posts: 8
Joined: Sun Feb 07, 2010 6:33 pm

Buying Shares In Own Business

Postby businessmind » Sun Feb 07, 2010 6:39 pm

I am a shareholder in my own business along with three other individuals. We each own a 25% share and are employed by the business. One of the shareholders wished to terminate their employment and sell their shares, which will be bought equally by the remaining shareholder.

The shares were originally bought for a nominal sum but we estimate that we will each have to pay £10,000 for the proportion we are buying. Could anyone provide outline advise on whether any tax relief is available (I am aware that the Enterprise Investment Scheme is not relevant in this case)?

pawncob
Posts: 4386
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Buying Shares In Own Business

Postby pawncob » Mon Feb 08, 2010 5:51 pm

There is no tax relief as such on this investment, but if you borrow the money, interest paid is allowable.
With a pinch of salt take what I say, but don't exceed your RDA

Tax Champion
Posts: 371
Joined: Wed Aug 06, 2008 4:09 pm

Re: Buying Shares In Own Business

Postby Tax Champion » Mon Feb 15, 2010 12:33 am

Under certain circumstances the company can buy the shares back. Worth checking with your accountant.


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