| Commentary

158 Tax treatment of bonus issues and scrip issues

| Commentary

158 Tax treatment of bonus issues and scrip issues

As a general rule, the issue by a company of bonus shares is treated as a re-organisation for capital gains tax purposes and consequently will not be treated as involving any disposal of the original shares or the acquisition of the new holding or any part of it1. Instead, the original shares (taken as a single asset) and the new holding (also taken as a single asset) will be treated as the same asset acquired at the time when the original shares were acquired and for the same consideration2. As a

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