CG51748 - Reorganisations of share capital: bonus and rights issues: case law
TCGA92/S126(2)(a) does not form an exhaustive definition of the term 바카라 사이트˜reorganisation of a company바카라 사이트™s share capital바카라 사이트™ as it applies to an increase in share capital. This was considered in the leading tax case on the subject, Dunstan v Young, Austen & Young Ltd (61TC448). In that case the Court of Appeal held that an increase in share capital can be a reorganisation even if it does not come within the precise wording of Section 126(2) 바카라 사이트˜provided that the new shares are acquired by existing shareholders because they are existing shareholders and in proportion to their existing beneficial holdings.바카라 사이트™ (61TC p471, paragraph H.) This means that there is a range of cases which do not take the form of a conventional bonus or rights issue but which should still be treated as reorganisations of share capital.
For example, an issue of shares by a wholly owned subsidiary to its parent may not take the form of a conventional rights issue with the subsidiary issuing a provisional letter of allotment. However, the trans-action may still be a reorganisation of share capital. Before deciding to challenge whether or not an issue of shares is a share reorganisation you should consider what difference it will make to the computation, see CG51765 and CG51846.
You may meet other arrangements, described as 바카라 사이트˜open offers바카라 사이트™ or 바카라 사이트˜vendor placings바카라 사이트™, instead of rights is-sues. These are discussed in CG51755+.