Commentary

C2.801 Stock dividends

Capital gains tax
Capital gains tax | Commentary

C2.801 Stock dividends

Capital gains tax | Commentary

Division C2.8     Shares and securities—special cases

Introduction to shares and securities—special cases

C2.801 Stock dividends

A stock dividend is an issue of shares by a company resident in the UK made1:

  1.  

    •     because a shareholder has exercised an option to take additional share capital as an alternative to a cash dividend (note, a shareholder is treated as exercising an option not only where he makes a positive choice but also where he abandons a right or fails to exercise a right), or

  2.  

    •     in respect of existing shares which, under their terms, carry the right to bonus share capital

A stock

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