The following Tax guidance note provides comprehensive and up to date legal information covering:
This practice note:
explains the key CGT (shorthand for capital gains tax and corporation tax on chargeable gains) implications of a rights issue for shareholders who:
are resident for tax purposes in the UK, and
hold their existing shares in the issuer as an investment and are therefore subject to taxation on chargeable gains in respect of any disposal of their shares (whether existing or new shares) in the issuer, but
does not cover the tax implications of a rights issue for shareholders who either:
are resident for tax purposes outside the UK, or
are subject to special tax rules because, for instance, they do not hold their existing shares as an investment (such as share dealers) or they have acquired (or are deemed to have acquired) their shares in connection with an employment or office
This practice note also does not deal with the tax implications of a rights issue where securities other than shares are offered.
For information on what a rights issue is, see: What is a rights issue? and for tax considerations for an issuer, see: Key tax considerations for the issuer in a rights issue.
From the perspective of existing shareholders of the issuer that:
hold their shares in the issuer as
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234