3(1)In subsection (3)(b) of section 289B of the Taxes Act 1988, for the words “bonus shares in that company which are eligible shares” there shall be substituted the words “corresponding bonus shares in that company”.
(2)After that subsection there shall be inserted the following subsection—
“(3A)In subsection (3) above “corresponding bonus shares” means bonus shares which—
(a)are issued in respect of the shares comprised in the original issue; and
(b)are of the same class, and carry the same rights, as those shares.”
(3)For subsection (4) of that section there shall be substituted the following subsection—
“(4)Subject to subsection (5) below, in this Chapter references (however expressed) to an issue of eligible shares in any company to an individual are references to any eligible shares in the company that are of the same class and are issued to him on the same day.”
(4)In subsection (5) of that section, for the words “the following provisions of this Chapter (except section 290(1))” there shall be substituted the words “sections 299(4) and 306(1)”.
(5)Sub-paragraphs (1) and (2) above have effect in relation to bonus shares issued on or after 6th April 1998.