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Share Buybacks
Our solicitors are vastly experienced in assisting companies of all sizes to facilitate and advise upon a company buyback of shares. At Blackstone Solicitors, we are able to advise many different types of client, no matter the complexity of the deal.
For more information about how our team of corporate solicitors can help you with the re-purchasing of shares in your business, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
Our Approach
Share buy-backs are most commonly used to enable a shareholder to exit a company, where the existing shareholders of the company are unable or unwilling to fund the purchase of the departing shareholder’s shares. They are also used to return cash to shareholders, change the respective shareholdings of individual shareholders and in connection with employee incentive schemes.
Blackstone Solicitors are known for our efficiency, attention to detail and ability to get things done; qualities much needed when pushing through and addressing the legal and tax implications of a share buyback. We will provide professional, pragmatic advice based on our years of experience in this specialist area.
Our team will do all that is necessary to ensure your business is properly represented in any negotiations and will put your interests first at all times. The share buyback of a business can be highly technical and can sometimes involve different areas of law and regulations; we can advise on all these areas and make sure you are in the best possible position for a successful outcome to your negotiations.
Why Legal Help is Important
It should be remembered that a share buyback can occur in companies of any size and in any industry.
The process can be highly complex and can be considered to be an incredibly important event that will have an impact on you and the business, both in the short and long term – it is therefore imperative that you have the best legal experts at your side, not only to ensure everything progresses as it should, but also to make sure both you and the business benefits from the best possible outcome.
Our Services
For a share buyback to take place, a number of conditions must be satisfied:
- The company must use its post-tax reserves to pay for the shares. If the company does not have cash available to pay for the shares the company cannot buy back the shares.
- The company must cancel any shares bought back. This means that all remaining shareholders gain an increased share entitlement as there are fewer shares in issue.
- If the shareholder is either an employee or a director at the time of the company share buyback and has held the shares for at least five years, the profit the shareholder makes is taxed as capital at the current rate of 10% for capital gains tax purposes.
- If the shareholder is not an employee or director but has held the shares for at least five years, any profit the shareholder makes is taxed as capital at the current rate of 20% for capital gains tax purposes.
- In other circumstances, any profit realised by the shareholder will be classed as a dividend for taxation purposes.
Whatever the structure of your company, we ensure full compliance with corporate laws and regulations, so your business can complete a share buyback on a firm financial and legal basis.
We will work with your management team and advisers to ensure all financial, tax and legal aspects of the buyback process is properly addressed. We are able to assist with any aspect of the share buyback of a business and will guide you through the technicalities in a clear and concise way. We have a team of experienced solicitors well versed in the process who are ready to assist you.
Get in Touch
Find out more about our services and how our corporate solicitors can assist you and your business by getting in touch. We have offices in Cheshire and London and are able to serve clients across the North West, including Chester and Manchester, as well as throughout the UK and also overseas.
Call us on 0345 901 0445 or complete our online enquiry form and we will be in contact as soon as we can.
