Related Commentary  Related HMRC Manuals

414A(1)  In this Chapter “bonus share capital” means–

(a)share capital issued otherwise than wholly for new consideration, or

(b)the part (if there is such a part) of any share capital so issued that is not properly referable to new consideration.

414A(2)  For the purposes of this Chapter share capital is issued by a company in lieu of a cash dividend if–

(a)it is issued in consequence of the exercise by any person of an option conferred on the person, and

(b)that option is an option to receive, in respect of shares in the company, either a dividend in cash or additional share capital.

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