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Purchase of own Shares

Would the fact of the vendor continuing to be a director of a company preclude Capital Gains tax treatment on company purchase of own shares.
Kate Dickson

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Not according to the legislation ...
... but the PoS has to benefit the trade rather than the personal financial requirements of the shareholder. The reasons given for the benefit to the trade on an application under s225 will be in terms of the older generation wanting t step aside to make way or in terms of board disagreements about the running and development of the business. If someone is hanging on as a director it makes it more difficult to satisfy the trade benefit test. It would depend on the precise circumstances.

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