Corporation Tax Act 2010 section 73

Subscription for shares

Section 73 defines what it means for a company to subscribe for shares in another company and explains how bonus shares issued in respect of those subscribed shares are treated for the purposes of this Chapter.

• A company subscribes for shares when another company issues those shares to it in exchange for money or money's worth.
• The shares must form part of the ordinary share capital of the investee company.
• If bonus shares are later issued in respect of shares that have been subscribed for, those bonus shares are also treated as having been subscribed for by the company.
• Any such bonus shares are treated as having been subscribed for on the same date as the original shares were subscribed for.