Section 89 | Stock dividends: consideration for new holding.

(1)In applying section 79(1) above in relation to the issue of any share capital to which section 249 of the Taxes Act 1988 (stock dividends) applies as involving a reorganisation of the company’s share capital, there shall be allowed, as consideration given for so much of the new holding as was issued as mentioned in—^F1

(a)subsection (4), (5) or (6) of that section, or^F1F2

(b)paragraph 12(1) of Schedule 19 to that Act,^F3F1

(read in each case with subsection (3) of that section) an amount equal to what is, for that much of the new holding, the appropriate amount in cash within the meaning of section 251(2) of the Taxes Act 1988.

(2)This section shall have effect notwithstanding the provisos to section 79(1) above.^F4