{
  "url": "https://openlegislation.uk/corporation-tax-act-2010/section-1051",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2010/section-1051.json",
  "legislation": "ukpga/2010/4",
  "legislation_title": "Corporation Tax Act 2010",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2010",
  "path": "section/1051",
  "kind": "section",
  "number": "1051",
  "heading": "“Bonus share capital” and “in lieu of a cash dividend”",
  "text": "(1) In sections 1049 and 1050 “bonus share capital” means—\n(a) share capital issued otherwise than wholly for new consideration, or\n(b) the part (if there is such a part) of any share capital so issued that is not properly referable to new consideration.\n(2) For the purposes of section 1049(1)(a) share capital is issued by a company in lieu of a cash dividend if—\n(a) it is issued in consequence of the exercise by a person of an option conferred on the person, and\n(b) that option is an option to receive, in respect of shares in the company, either a dividend in cash or additional share capital.\n(3) For the purposes of subsection (2), an option to receive either a dividend in cash or additional share capital is conferred on a person not only—\n(a) if the person is required to choose one or the other, but also\n(b) if the person is offered the one subject to a right, however expressed, to choose the other instead.\n(4) The reference in subsection (2) to a person's exercise of an option includes a person's abandonment of, or failure to exercise, a right such as is mentioned in subsection (3)(b).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2010/4/section/1051",
    "retrieved_at": "2026-10-29T09:10:29.433154+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}