Disposals by trustees: shares held by trustees: trusts established under law of England & Wales or law of Northern Ireland
Except in the case of an enhanced stock dividend, which is considered in CG33816, where:
- a trustee receives a stock dividend as defined in ITTOIA05/S414A (CTM17000 onwards)
- the settlement is one to which the law of England & Wales or the law of Northern Ireland applies
- there is a beneficiary with an interest in possession, generally a life interest, at the time of issue,
then he or she is beneficially entitled to it, or to his or her share of it, immediately. This is because such a stock dividend is received as income, and the income belongs to the beneficiary. See Archer-Shee v Baker, 11TC749. Therefore ITTOIA05/S410(2) applies to the beneficiary.