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Corporation Tax Act 2010

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Changes over time for: Section 1049

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Corporation Tax Act 2010, Section 1049 is up to date with all changes known to be in force on or before 10 May 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

1049Stock dividendsU.K.
This section has no associated Explanatory Notes

(1)This section applies to—

(a)share capital issued by a UK resident company in lieu of a cash dividend, and

(b)bonus share capital issued by a UK resident company in respect of shares in the company of a qualifying class.

(2)For the purposes of subsection (1)(b) shares are of a qualifying class if—

(a)shares of that class carry the right to receive bonus share capital in the company (of the same or a different class), and

(b)that right is conferred by the terms on which shares of that class were originally issued or by those terms as subsequently extended or otherwise varied.

(3)If the share capital is issued in a case where section 410(2), (3) or (4) of ITTOIA 2005 (stock dividend income) applies—

(a)the share capital does not, despite paragraph C in section 1000(1) (redeemable share capital), constitute a distribution within the meaning of section 1000(1), and

(b)the share capital is not, for the purposes of—

(i)section 1022 (bonus issues following repayment of share capital), or

(ii)section 1026 (distributions following a bonus issue),

treated as issued “as paid up otherwise than by the receipt of new consideration”.

(4)This section is subject to—

(a)section 1050, and

(b)paragraph 108 of Schedule 2 (special rules for share capital issued in respect of shares issued before 6 April 1975).

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