Buyback
When a company buys back its own shares from shareholders, usually at a set price.
A buyback is when a company buys back some of its own shares, usually at a set price. You choose whether to tender your shares. Since 1 April 2026, what you get is taxed as capital gains, after a stretch when it was taxed like a dividend. See our corporate actions explainer.
Questions people ask
What is a share buyback?
A buyback is when a company uses its cash to buy some of its own shares from shareholders, usually at a set price. Shareholders choose whether to offer their shares.
Do I have to sell my shares in a buyback?
No. A buyback is an offer. You decide whether to tender your shares, and how many, within the terms the company sets.
How is a buyback taxed?
From 1 April 2026, buyback proceeds are taxed as capital gains in the shareholder's hands, per Budget 2026-27. From 1 October 2024 to 31 March 2026 they were taxed as dividend. Check the current rules.
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