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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If a sales of shares is made and then an acquisition of shares

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If a sales of shares is made and then an acquisition of shares is made within 30 days of this sales via either a bonus issue or a rights issues are these treated in the same way as open market purchases i.e to be used as the base cost for the share sale 30 days earlier.


Bonus issue shares and rights issue sahres are specifically excluded from the same day and 30 day share identification rules as you will read on pages 2 and 3 of HS285 here. See examples 3 and 4. Any shares acquired as bonus shares or right issue shares are added to the pool.

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.

Thanks. Does this mean therefore that when matching share sales against the Pool, bonus issues and right issues made after the disposal of shares are not used in the Pool calculation for earlier share sales.

That's correct. See example 3 which deals with that point.
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