Constellation Software Inc Dividend Warrants 31/03/40 CA21037X1345 – BR52TP7
I can see why this information may seem relevant to the ISA rules in that they refer to qualified investments under the Income Taxes Act but this is just related to Canadian law and nothing to do with the UK ISA scheme.
The ISA regulations (see relevant ISA Managers’ Guidance below) refer to ‘investment trusts’ which are UK authorised companies within section 1158 of the Corporation Taxes Act.
This particular company (link below) is a Canadian based company that does not meet the criteria of a UK investment trust so the rules around warrants would not be applicable.
So any warrants issued by this company would not qualify for ISA inclusion.
Home | Constellation Software (csisoftware.com)
Shares and securities in investment trusts
Shares in an investment trust are qualifying investments if the investment trust satisfies the requirement for investments.
Securities in an investment trust are qualifying investments if they meet the same conditions as those detailed for securities and before 1 July 2015, the investment trust satisfied the requirement for investments.
A company is an ‘investment trust’ if it is such a trust for the purposes of section 1158 of the Corporation and Taxes Act 2010.
The requirement for investments before 1 July 2015 was satisfied if not more than 50% in value of the investments held by the investment trust are securities that are not qualifying securities or government securities.
There is no requirement that any securities held be otherwise eligible for a stocks and shares ISA. For example, the 50% test would not prevent an investment trust from investing more than 50% of its funds in stocks and shares that are not listed on recognised stock exchanges, or long-dated government securities issued by non-UK or EEA states.
Warrants in an investment trust are not qualifying investments unless, exceptionally, they are attached to shares purchased by an ISA manager in the course of a public offer.