195 Companies acquiring their own shares
Finance Act 2003 (2003 c 14) | Legislation

Part 9 Miscellaneous and Supplementary Provisions

Provisions consequential on changes to company law

195  Companies acquiring their own shares

(1)     This section applies for the purposes of the Taxes Acts and the Inheritance Tax Act 1984 (c 51) where a company acquires any of its own shares (whether by purchase, the issuing of bonus shares or otherwise).

(2)     The acquisition of any of those shares by the company is not to be treated as the acquisition of an asset.

(3)     The company is not, by virtue of the acquisition or holding of any of those shares or its being entered in the company's register of members in respect of any of them, to be treated as a member of itself.

(4)     Subject to subsection (5)—

(a)     the company's issued share capital is to be treated as if it had been reduced by the nominal value of the shares acquired,

(b)     such of those shares as are not cancelled on acquisition are to be treated as if they had been so cancelled, and

(c)     any subsequent cancellation by the company of any of those shares is to be disregarded (and, accordingly,

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