The following Tax guidance note provides comprehensive and up to date legal information covering:
This practice note sets out the tax information that is required to be disclosed in a rights issue offer document (sometimes called a prospectus) where the issuer's shares are listed on the main market of the London Stock Exchange (LSE) or quoted on the Alternative Investment Market (AIM). It also outlines the level of tax information that is market standard for a UK issuer to include in an offer document in a rights issue.
In this practice note, CGT is used as shorthand for both capital gains tax and corporation tax on chargeable gains.
For a precedent UK tax disclosure, see: Tax disclosure—rights issue prospectus—Main Market.
Where the issuing company's shares are publicly traded, by for instance being listed and traded on the LSE’s main or professional securities market or traded on AIM, the rights issue offer document must include information on:
whether any withholding tax is imposed on income from the securities, such as dividends
whether the issuer assumes responsibility for the withholding tax (if any is imposed), and
an indication of the amount of any taxes specifically charged to a subscriber or buyer of the issuer’s securities
The information on withholding tax is required in respect of the jurisdiction in which the issuer has its registered office and
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