D6.220 Bonus issue—definition and effect of acquisition
Generally, a bonus issue falls within the share reorganisation rules (D6.101–D6.103) and should therefore be tax neutral for the shareholders.
Definition of a bonus issue
A bonus issue (or scrip issue) involves:
- Ìý
•ÌýÌýÌýÌý new shares being issued for no payment to all existing shareholders (or to holders of specific classes of share) pro rata to their current shareholdings in the issuing company, and
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:05