3(1)Where share capital is issued at a premium representing new consideration, the amount of the premium is to be treated as forming part of that share capital for the purpose of determining under this Part of this Schedule whether any distribution made in respect of shares representing the share capital is to be treated as a repayment of share capital:
Provided that this sub-paragraph shall not have effect in relation to any part of the premium after that part has been applied in paying up share capital.
(2)Subject to sub-paragraph (1) above, premiums paid on redemption of share capital are not to be treated as repayments of capital.