CHF - SH03 - Return Of Purchase Of Own Shares
A purchase of own shares is when a company purchases shares in itself from an existing shareholder and the shares purchased are not redeemable shares. Please see “Own Share Purchase out of Capital – Guidance Notes” for more information.
There are several conditions that a private company must fulfil in order to be able to purchase its own shares.
The purchase of own shares is subject to stamp duty. If stamp duty is to be paid, a company should send an electronic version of form SH03 to HM Revenue & Customs Stamp Office and pay the appropriate stamp duty. HMRC will then issue a letter confirming payment of stamp duty, which the company should send to Companies House together with form SH03 within 28 days of the purchase of own shares. See box 4 on Form SH03 and Companies House website for details. Failure to do so is an offence and any officer of the company in default is liable to a fine if found guilty.
This document is in PDF format and the up to date version of it can be found on the Companies House website by clicking on this link to the relevant page: https://www.gov.uk/government/publications/notify-a-purchase-of-own-shares