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  • Rights issues

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Companies may periodically issue their shareholders with rights to purchase additional shares. A particular issue might be described as a 'one-for-four' issue, meaning that you are entitled to purchase an additional share for every 4 shares you currently own. You can choose to exercise the right, sell it on the stock exchange or allow it to lapse.

    Unless you deal regularly with rights issues or other similar products, the only tax consequences that may arise involve the capital gains tax measures. For information on how these measures apply to rights issues see the publication Guide to Capital Gains Tax.

    Last modified: 23 Dec 2019QC 16138