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Share showdown
KEY POINTS
- Understanding the personal tax implications of transactions in corporate shares when held as a portfolio investment.
- In a bonus issue the company issues extra free shares to shareholders in proportion to their existing stock.
- In a share consolidation the number of issued shares is reduced.
- Rights issues of shares can appear in several common scenarios.
- Worked examples of share transactions.
- Scrip and DRIP dividends for trusts raise special issues because the shares received may be treated as capital rather than income.
- In a merger advance HMRC clearance for a ‘paper for paper’ exchange can trigger the reorganisation treatment in TCGA 1992 s 127.
- In a demerger the shareholders will hold...
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