Part 23

Company distributions
Chapter 3

Matters which are not distributions

Purchase of own shares

Other requirements
1042
1
The seller must not, immediately after the purchase, be connected with—
a
the company making the purchase, or
b
any other company which is a member of the same group as that company.
2
The purchase must not be part of a scheme or arrangement which is designed, or likely, to result in—
a
the seller, or
b
an associate of the seller,
having disqualifying interests in the company.
3
For the purposes of subsection (2), interests in the company are disqualifying interests if any of the requirements in subsection (1) and sections 1037 and 1039 could not be met if the person in question had those interests immediately after the purchase.
4
A transaction occurring within one year after the purchase is treated for the purposes of subsection (2) as part of a scheme or arrangement of which the purchase is also part.
5
Subsections (1) and (2) are subject to section 1043.
Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)