Capital Gains Tax Act 1979 (repealed 6.3.1992) (c. 14)

Part IV U.K. Shares and Securities

Chapter II U.K. Reorganisation of Share Capital, Conversion of Securities, Etc.

Modifications etc. (not altering text)

C1 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 220(9)

Stock dividends U.K.

89 Stock dividends: consideration for new holding. U.K.

(1) In applying section 79(1) above in relation to the issue of any share capital to which section [F1 249 of the Taxes Act 1988] (stock dividends) applies as involving a reorganisation of the company’s share capital, there shall be allowed, as consideration given for so much of the new holding as was issued as mentioned in—

(a) subsection (4), (5) or (6) of [F1 that section], [F2 or]

[F3 (b) paragraph [F1 12(1) of Schedule 19] to that Act],

(read in each case with subsection (3) of [F1 that section]) an amount equal to what is, for that much of the new holding, the appropriate amount in cash within the meaning of [F1 section 251(2) of the Taxes Act 1988].

(2) This section shall have effect notwithstanding the [F4 provisos] to section 79(1) above.

Textual Amendments

F1 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 para. 32

F2 Word repealed by Finance Act 1989 (c. 26, SIF 63:2), s. 187 and Sch. 17 Part V where the due date of issue of the share capital issued to a close company falls in an accounting period beginning after 31 March 1989

F3 S. 89(1)(b) repealed by Finance Act 1989 (c. 26, SIF 63:2), s. 187 and Sch. 17 Part V where the due date of issue of the share capital issued to a close company falls in an accounting period beginning after 31 March 1989

F4 Word substituted by Finance Act 1981 (c. 35, SIF 63:2), s. 91(2)(a)