76A.    Part-disposal of shares

 

(1)    Where-

 

(a)     a return of capital or foreign return of capital by way of a distribution of cash or an asset in specie (other than a share distributed in terms of an unbundling transaction contemplated in section 46(1)) is received by or accrues to a shareholder in respect of a share; and

(b)     that return of capital or foreign return of capital is received by or accrues to that shareholder on or after 1 October 2007 and before 1 April 2012,

that shareholder must be deemed to have disposed of part of that share on the date that the return of capital or foreign return of capital is received by or accrues to the shareholder.

 

(1A)    Subject to paragraph 76(2), where-

 

(a)     a return of capital or foreign return of capital by way of a distribution of cash or an asset in specie (other than a share distributed in terms of an unbundling transaction contemplated in section 46(1)) is received by or accrues to a shareholder in respect of a share;

(b)     that return of capital or foreign return of capital is received by or accrues to that shareholder on or after valuation date but before 1 October 2007; and

(c)     that share is not disposed of before 1 April 2012,

that return of capital or foreign return of capital must be treated as having been distributed on 1 April 2012.

 

(2)     If paragraph 76(2) applies and the base cost of those shares is a negative amount at the end of 31 March 2012-

 

(a)     that shareholder must be treated as having a capital gain on 31 March 2012 equal to that negative amount; and

(b)     the base cost of those shares at the end of 31 March 2012 must be treated as nil.

(3)     For purposes of paragraph 33(1) the market value of the part disposed of under this paragraph must be treated as being equal to the amount of the cash or the market value of the asset received or accrued by way of a return of capital or foreign return of capital.