Share buy back

[mattster]

Just reading how share buy backs, used by the like of Apple, can be more tax efficient than dividends. That being the case, how long will it be before some chancer dreams up a myco ltd scheme attempting to use the same mechanism?

Must admit it took me a while to twig why they do it, but I also read something a while ago and of course the answer is obvious: capital gains tax is often lower than div tax. Just another scam, really. Unfortunately probably not an avenue open to us, but it is about time the accountants got to work on another loophole that would be.

[jayn200]

The basics of it is that you don't actually extract any money when the company buys back the shares... it just increases the value of the shares, you still need to sell them onto to someone else... which just isn't available as an option in any legal reasonable way to a 1 or 2 (in case of spouses) person contractor LTD as a means of distributing profit... and even if it was... the share buyback itself would do nothing as you own 100% of the shares anyway and their value is directly 1 to 1 value to net assets in company.

[Lance]

Aha! So you're as stupid as London Project Manager Now Tax Dodging in Switzerland! Although saving grace, you found the answer yourself as to why it doesn't work.

That's a little harsh.
From the very first thought I was sure it wouldn't work. I was merely intrigued as to why.

[NotAllThere]

https://forums.contractoruk.com/acco...-buy-back.html


KUATB

Aha! So you're as stupid as London Project Manager Now Tax Dodging in Switzerland! Although saving grace, you found the answer yourself as to why it doesn't work.

[Lance]

https://forums.contractoruk.com/acco...-buy-back.html


KUATB

[eek]

That’s the kind of thinking I’d expect from a London Project Manager Now Tax Dodging in Switzerland.

Hold on, you’re in Switzerland, aren’t you…

Wondered why he was so f*88ing stupid.

the fact he’s a PM explains it

[jamesbrown]

Transactions in Securities is a thing…

[WTFH]

Aha. At an over inflated price, and therefore reducing corp tax!

That’s the kind of thinking I’d expect from a London Project Manager Now Tax Dodging in Switzerland.

Hold on, you’re in Switzerland, aren’t you…

[NotAllThere]

You buy them back from yourself?

Aha. At an over inflated price, and therefore reducing corp tax!

[tazdevil]

You buy them back from yourself?