How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

We are a limited company and due to a disagreement between

Customer Question

We are a limited company and due to a disagreement between shareholder the company purchased its own shares can this purchase be deducted from retained share capital reserve account ?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
The company was advised to pay dividends and reduce the working directors/salaries however the dispute is believed to have engineered to ensure the remaining Director/shareholder purchased the shares leaving the existing director to set up a business in competition .
Customer: replied 1 year ago.
Sorry exiting director to set up a business in competition .
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Alternatively or as a combination of both can the company buy the shares via its b/fd retained profits
Expert:  Nicola-mod replied 1 year ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 1 year ago.
NicolaPlease continue to lookthanks
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The position as to companies buying their own shares is exceedingly complex and can be summarised here:

http://www.companylawclub.co.uk/can-a-company-buy-its-own-shares

The shares bought back would normally be treated as a reduction in share capital for accounting purposes.

I do hope that you have found my reply of assistance.