Policy paper

Income Tax: special purpose share schemes

This Tax Information and Impact Note is about special purchase share schemes.

• From: HM Revenue & Customs
• Published: 10 December 2014

Documents

Income Tax: special purpose share schemes

PDF, 24.6 KB, 2 pages

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Details

Companies use special purpose share schemes to offer shareholders the choice to receive either a dividend or to receive a similar amount through an issue of new shares that are subsequently purchased by the company or sold to a pre-arranged third party. This measure will align the tax consequences of that choice to ensure that all shareholders are taxed as if they had received a dividend.

Published 10 December 2014