Download the full outcome
Detail of outcome
Following this consultation the government took forward the existing proposals and some additional deregulatory changes.
The Companies Act 2006 (Amendment of Part 18) Regulations 2013 that give effect to these changes came into force on 30 April 2013.
We have published a simple guide ‘Employee Ownership and Share Buy Backs: Guide to Companies Act Regulations’ to explain these changes and how the regulations work.
We will carry out a post-implementation review 3 years after the Regulations came into force.
HM Revenue and Customs have produced tax guidance on the main issues relating to share buy backs. This guidance can be found at HMRC tax guidance on employee ownership.
The ‘Nuttall Review on Employee Ownership’ recommended (recommendation V) that the government should review and consult on changes to deregulate the conditions under which companies can:
- authorise share buy backs
- finance share buy backs
- and hold shares ‘in treasury’
This consultation seeks views on deregulatory changes to simplify how private companies may authorise and finance the repurchase of its own shares, and hold these shares in treasury once repurchased. We want to understand the possible implications for companies, employees, and other stakeholders, and to ensure that there are no unintended consequences. The draft regulations attached show the legislative changes that would be needed.