455. Sales cum dividend and ex dividend.

A dividend forms part of the recipient's total income, notwithstanding that the price paid for the shares in respect of which the dividend is declared was enhanced by reason of the shares being purchased cum dividend1; and, where there is a sale by a vendor of shares or securities cum dividend, or interest, no part of the purchase price is income in the vendor's hands2. On a sale of shares ex dividend, the dividend when declared is the vendor's income; and, if the purchaser actually receives the dividend, he is trustee of it for the vendor