FA 2015: B share schemes

Helen Gilbey

Sarah Falk

Helen Gilbey and Sarah Falk (Freshfields Bruckhaus Deringer) report

Finance Act 2015 includes measures to prevent companies from returning cash to shareholders in a way that offers a choice between income and capital treatment.

These changes were first announced in the Autumn Statement in December 2014. They came as a surprise and will disrupt a well established practice that many will have assumed was blessed by the GAAR guidance.

Background

A number of factors will influence a company’s choice of method to return cash to its shareholders including tax. One such method a B share scheme was originally introduced to enable companies to provide a capital return to shareholders. Over time B share schemes developed to...

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Helen Gilbey and Sarah Falk (Freshfields Bruckhaus Deringer) report

Finance Act 2015 includes measures to prevent companies from returning cash to shareholders in a way that offers a choice between income and capital treatment.