Lee Sharpe warns of a change in HMRC’s stated position, which has taken many by surprise.
Many readers will be familiar with the regime where a company buys back its own shares but, by way of background, a company purchase of own shares (CPOS) is a useful device that can help people exit or retire from a profitable company without the other owners having to lay out significant cash in the process.
Example: Just Dance Limited
Beyoncé and Jason – who are otherwise unconnected – have been equal founding director-shareholders in a successful London dance studio for more than a decade, but Beyonce wants to retire and move to Scotland to pursue a career in viniculture. Her 50% stake in the company is worth around £500,000; Jason is happy to carry on running the business on his own but would struggle to raise £500,000 personally, to buy Beyonce
