51 per cent subsidiary, meaning

Advance clearance of payments

Advance corporation tax, allotment of preference shares

Buy-back where continued economic ownership by vendor

Buy-back where vendor remains connected with company

Buy-back where vendor's associates continue to hold shares

Capital distributions

Capital payment/company distribution

Chargeable gains

Chargeable gains, acquisition not treated as acquisition of asset

Clearance procedures

Conditions for payments not to be treated as distributions

Discharge of inheritance tax liability

Disposal of shares

Distribution, inclusion in chargeable gains computation


Aggregation with associates

Clearance applications

Connected persons

Corporate shareholder, capital gains tax

Excess paid over the amount of capital

Exempt distributions


Information, powers to obtain

Inheritance tax payment

Motive behind transactions

Payments excluded

Reduction of vendor's interest

Reporting requirements

Residence of vendor

Substantial reduction

Trading benefit


Vendor ceasing to be connected

Vendor's length of ownership

Failure to redeem or purchase, effect of

General provisions


Group, meaning

HMRC approval in advance of buy-back


List of key points

Payment for benefit of trade

Period of ownership



Quoted companies

Residence requirements

Seller's interest as shareholder, reduction of

Entitlement to profits, effect of



Relaxation of requirements

Treasury shares

Vendor's interest in company on buy-back, required reduction

Vendor's interest in group on buy-back, required reduction

Vendors qualifying for relief on buy-back