CD 7B Shares issued under profit distribution plans
Profit distribution plan shares

(1)

A share issued by a company under a profit distribution plan is a dividend.

Amount of dividend

(2)

The amount of the dividend is the amount offered by the company for the repurchase of the share.

Relationship with section CD 22

(3)

Section CD 22 does not apply in relation to a share issued under a profit distribution plan and repurchased by the company as part of the plan.

Defined in this Act: amount, company, dividend, profit distribution plan, RWT, share

Section CD 7B: inserted (with effect on 1 October 2012), on 2 November 2012, by section 7 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).