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Under the Finance Act 2003 a purchase by a company of its own shares into treasury is to be treated in the same way as a cancellation of shares and a sale of treasury shares is to be treated in the same way as an issue of shares.
A company will not be subject to tax on any profit made from acquiring or disposing of shares into and out of treasury and if it makes a loss this is not relievable.
Where shares are purchased to be held in treasury the transaction will continue to be liable to the current 0.5% stamp duty or SDRT. On cancellation, a fixed duty of £5 will be levied and on transfer, there is no stamp duty or SDRT unless the transfer is to a clearance system or an issuer of depositary receipts
Corporate > Products & Services > Share Registration > Treasury Shares
Treasury Shares Service
The ability for companies to buy back shares and hold them in treasury has taken some time to become an established practice. However, as demand is increasing we have recently introduced a custody service whereby clients can hold treasury shares in CREST.
This custody service is FSA regulated and entails holding shares in a sponsored CREST member account in the company’s name.
Benefit from:
- A regulated custody service providing greater protection, security and efficiency than holding shares in certificated form.
- Faster and easier transfers, deposits and withdrawal of stock.
- Quicker and more efficient settlement.
- A guarantee that treasury shares are clearly identified and administered in accordance with the Regulations.
- Handling of a transfer of treasury shares in satisfaction of share awards under an employee share scheme, if required.
- The attached information gives information about companies’ obligations under the Regulations and also details our services.
Share registration and associated services are provided by Capita Registrars Limited. Registered in England No. 2605568.
Regulated services are provided by Capita IRG Trustees Limited, which is authorised and regulated by the Financial Services Authority (FSA Register number 184113). Registered in England No. 2729260.
Capita Share Dealing Services and Capita Share Plan Services are trading names of Capita IRG Trustees Limited.
Registered office: The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU.
Part of The Capita Group Plc.
