Finance Act 2008

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Purchase of own shares — supplementary.

48.— (1) The Principal Act is amended by inserting the following section after section 176:

“176A.— (1) Subject to subsection (2), no sum shall be deducted in computing the amount of the profits or gains charged to tax under Case I or II of Schedule D in respect of any payment that is treated by virtue of section 175 or 176 as not being a distribution.

(2) Subject to section 81(2)(n), subsection (1) shall not apply to so much of any payment as consists of expenditure incurred by a company to the extent that it is incurred on shares acquired by the company and given by it as consideration for goods or services, or to an employee or director of the company.”.

(2) This section applies as respects accounting periods ending on or after 31 January 2008.