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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Co.purchases own shares: valuations: general


For the reasons explained in CG58600 the connected persons legislation of TCGA92/S18 does not apply to a purchase of own shares by a UK incorporated company. Because Section 18 does not apply you should not ask Shares and Assets Valuation (SAV) for a valuation of the shares purchased on the grounds that the company and the shareholders were connected persons. A valuation will only be necessary if you believe the purchase is not a bargain made at arm’s length as that phrase is used in TCGA92/S17, see CG14540. Before asking SAV for a formal valuation you should consider whether an informal opinion would be sufficient to check whether the point was worth pursuing, see CG59561.