CTM15410 - Distributions: general: repayment of share capital - bonus issues - exceptions

ICTA88/S211 (2) limits the operation of ICTA88/S211 (1). This provides that Section 211 (1) does not prevent a repayment of bonus shares being treated as a repayment of share capital if:

• the bonus shares were not redeemable shares, and
• the repayment takes place more than 10 years after the issue of those shares, and
• the company making the repayment is not a company within ICTA88/S704D (broadly an unquoted or closely controlled company) (see CTM36840).