Part 23 Company distributions

Chapter 2 Matters which are distributions

Distributions in respect of special securities

1018 The principal secured: special securities
(1) No amount is to be regarded for the purposes of paragraph F in section 1000(1) as representing the principal secured by a security so far as it exceeds any new consideration which has been received by the company for the issue of the security.
This is without prejudice to section 1117(6).
(2) Subsection (3) applies if—
(a) a security of a company is issued at a premium representing new consideration, and
(b) there is a distribution in respect of the security.
(3) The reference in paragraph F in section 1000(1) to however much of the distribution represents the principal secured by the security is to be read as a reference to the sum of—
(a) however much of the distribution represents the principal, and
(b) however much of it represents the premium.
Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)