Section 142 Capital gains on stock dividends.F1
United Kingdom
This section applies where any share capital to which F2section 410(2), (3) or (4) of ITTOIA 2005 applies in respect of shares in the company held by any person.
The case shall not constitute a reorganisation of the company’s share capital for the purposes of sections 126 to 128.
The person who acquires the share capital by means of its issue shall (notwithstanding section 17(1)) be treated for the purposes of section 38(1)(a) as having acquired that asset for a consideration equal to F3the cash equivalent of the share capital in accordance with section 412 of ITTOIA 2005.
Annotations
Textual amendments
- F1
S. 142 substituted for ss. 141, 142 (with application in accordance with s. 126(2) of the amending Act) by Finance Act 1998 (c. 36), s. 126(1)
- F2
Words in s. 142(1) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 434(2) (with Sch. 2)
- F3
Words in s. 142(3) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 434(3) (with Sch. 2)
Notes on Part IV
Modifications
- C1
Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)