Taxation of Chargeable Gains Act 1992 (c. 12)

Part IV U.K. Shares, securities, options etc.

Chapter III U.K. Miscellaneous provisions relating to commodities, futures, options and other securities

[F1 142 Capital gains on stock dividends. U.K.

(1) This section applies where any share capital to which section 249 of the Taxes Act applies is issued as mentioned in subsection (4), (5) or (6) of that section in respect of shares in the company held by any person.

(2) The case shall not constitute a reorganisation of the company’s share capital for the purposes of sections 126 to 128.

(3) The person who acquires the share capital by means of its issue shall (notwithstanding section 17(1)) be treated for the purposes of section 38(1)(a) as having acquired that asset for a consideration equal to the appropriate amount in cash (within the meaning of section 251(2) to (4) of the Taxes Act).]

Textual Amendments

F1 S. 142 substituted for ss. 141, 142 (with application in accordance with s. 126(2) of the amending Act) by Finance Act 1998 (c. 36), s. 126(1)