Aviva’s Share Buyback Scheme’s Tax Benefits: Explained

May 9, 2022, 6:23 PM UTC

Shareholders in Aviva plc., one of the U.K.’s largest insurance firms, have voted in favor of a plan to disperse 3.75 billion pounds ($4.6 billion) in cash.

The proposal, approved Monday, would see the insurance giant give “B-shares” to all ordinary shareholders for free, then immediately buy back the shares at 1 pound ($1.23) per share. The company will consolidate existing shares so the newly issued B-shares won’t dilute existing shareholder capital.

The move has an added benefit for shareholders—it would leave investors with a smaller tax bill on dividends while allowing Aviva to pay back capital to all ...

Learn more about Bloomberg Tax or Log In to keep reading:

Learn About Bloomberg Tax

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools.