184 Treasury shares

This section addresses for tax purposes the power granted to companies under section 209 of the Companies Act, 1990 to hold their own shares, acquired from their shareholders, as “treasury shares” for subsequent reissue or cancellation.

For the purposes of the Tax Acts and the Capital Gains Tax Acts —

• treasury shares which are not cancelled by a company are treated as cancelled immediately they are acquired by the company,
• no allowable loss arises on cancellation of treasury or other shares by a company regardless of whether the shares are actually cancelled or are treated as cancelled for tax purposes, and
• reissues of treasury shares are treated as new issues of shares.

Relevant Date: Finance Act 2021