Corporation Tax Act 2010 section 1036

Determining the period of ownership

Section 1036 explains how the period of ownership of shares is determined for the purposes of the own-share purchase rules, including situations where shares were received from a spouse, civil partner, or through inheritance.

• Where shares were transferred to the seller by a spouse or civil partner who was living with them at the time, the transferor's period of ownership counts as the seller's own period of ownership.
• This spouse or civil partner rule does not apply if, at the date of the company's purchase, the transferor is still alive but is no longer the seller's spouse or civil partner living with the seller.
• Where the seller inherited the shares under a will or intestacy, or is the personal representative of the deceased owner, the previous owner's (and their personal representatives') period of ownership is treated as the seller's period of ownership.
• In inheritance cases, the required period of ownership is reduced from five years to three years.