We've looked into the various ways of facilitating the purchase of the departing shareholder shares and have considered a company purchase of own shares, for which I think we satisfy all of the conditions and I'm confident we could get approval for the capital method to apply.
My question is this, whilst we can see how this benefits the seller as the capital method will result in a much lesser tax bill than the distribution method, what are the benefits to us, the remaining shareholders?
Is there any reason why a company purchase of own shares would be more beneficial to us that us buying the shares from the departing shareholders as individuals?
Other than the logistics of having to find the money to do so, is there any tax benefit to it?
Many thanks in advance for any advice given.
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