CG53530 - Securities: debts: company purchase of own debentures
Where a company buys its own debentures at less than their nominal value and cancels them, there will be no chargeable gain on the company. »Ê¹ÚÌåÓýapp difference between the company’s acquisition price and the nominal value of the debentures does not derive from the disposal of an asset. In law, a person cannot be the holder of their own debt. »Ê¹ÚÌåÓýapp buying-in of the debenture liability should, therefore, be treated as equivalent to the redemption of a debt.