Section 142 — Taxation of Chargeable Gains Act 1992: Capital gains on stock dividends.

Capital gains on stock dividends. 142 1 This section applies where any share capital to which section 410(2), (3) or (4) of ITTOIA 2005 applies in respect of shares in the company held by any person.

2 The case shall not constitute a reorganisation of the company’s share capital for the purposes of sections 126 to 128.

3 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 the cash equivalent of the share capital in accordance with section 412 of ITTOIA 2005 .