Part 4Savings and investment income
Chapter 5Stock dividends from UK resident companies
412Cash equivalent of share capital
C2C11
The cash equivalent of share capital F2issued as mentioned in section 410(1)(a) is the amount of the cash dividend alternative (see section 414A(2)).
C2C12
But if the difference between the cash dividend alternative and the share capital's market value equals or exceeds 15% of that market value—
a
subsection (1) does not apply, and
b
the cash equivalent of the share capital is its market value.
3
The cash equivalent of share capital F1issued as mentioned in section 410(1)(b) is its market value.
C2C14
For the purposes of this section, market value is determined—
a
in the case of listed share capital, on the date of first dealing, and
b
in the case of other share capital, on the earliest date on which the company is required to issue it.
C2C15
In this section—
“listed” means listed in the Stock Exchange Daily Official List, and
“market value” has the same meaning as in sections 272(1) and (3) and 273(3) of TCGA 1992.