Company Buy-Back

Company Buy-Back

If your company wants to buy back your shares, any amount receivable by you would usually be subject to income tax rates

However, if you meet certain conditions, it would be subject to Capital gains rates of 33%

Qualifying conditions would be:

1. If the company is a trading company company
2. The buy-back must of made to “benefit the trade” of the company
3. The shares must been owned for the previous five years prior to disposal
4. You must be tax resident.
5. Your remaining interest in the company must not exceed 75% of the interest held by you before the buy-back
6. Your and your associates (i.e. family) interest in the company must be less than 30% of the company after buy-back

Very useful for situations where there is retiring shareholder who wishes to avail of retirement relief etc

Subject to qualifying conditions

Any queries on same give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie