CG51823 - Share reorganisations: consideration paid: foreign stock dividends
You are most likely to see the operation of this rule in the case of stock dividendsdeclared by foreign companies. The company will declare a cash dividend but offer itsshareholders the option of taking up further shares instead of the cash. If a shareholdertakes the shares rather than the cash the company바카라 사이트™s assets have not been reduced by payingout the cash. To the extent that the shareholders opt to take their dividend in shares,the effect is similar to a bonus issue for which no consideration is given and you shouldtreat it in the same way. There is guidance on the Case V treatment of such dividends atIM1612.