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IHTM34187 | Changes in shareholdings: rights issue

From HM Revenue & Customs · Inheritance Tax Manual

If a rights issue is declared in respect of a qualifying investment (IHTM34131) the appropriate person (IHTM34161) may

  • sell the rights (IHTM34188)

  • take up and sell the allotted shares (IHTM34189)

  • neither take up nor sell the rights (IHTM34190)

  • dispose of the rights without consideration (IHTM34191), or

  • sell part of the rights and accept the balance (IHTM34192) of the shares.

The impact on the calculation of the loss will depend on what option the appropriate person takes.