- Latest available (Revised)
- Original (As enacted)
There are currently no known outstanding effects for the Corporation Tax Act 2010, Cross Heading: Bonus issue following repayment of share capital.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)Subsection (3) applies if a company—
(a)repays or has repaid any share capital, and
(b)at or after the time of the repayment issues any share capital as paid up otherwise than by the receipt of new consideration.
(2)But subsection (3) does not apply so far as any provision of the Corporation Tax Acts makes contrary provision.
(3)The amount paid up as mentioned in subsection (1)(b) is treated for the purposes of the Corporation Tax Acts as a distribution made in respect of the shares on which it is paid up, except so far as that amount exceeds the adjusted amount of the repaid share capital.
(4)The reference in subsection (3) to the adjusted amount of the repaid share capital is to—
(a)the amount, or total amount, of share capital repaid as mentioned in subsection (1)(a), minus
(b)any amounts previously paid up as mentioned in subsection (1)(b) and treated as distributions by virtue of subsection (3).
(1)Section 1022(3) does not apply if the issue of share capital mentioned in section 1022(1)(b)—
(a)takes place more than 10 years after the repayment of share capital mentioned in subsection 1022(1)(a), and
(b)is not of redeemable share capital.
(2)But subsection (1) does not prevent section 1022(3) from applying in the case of a company which is a relevant company for the purposes mentioned in section 739 (certain companies not included in the official UK list etc).
(3)Section 1022(3) does not apply if the repaid share capital consists of fully paid preference shares and—
(a)those shares were issued as fully paid preference shares,
(b)they were issued wholly for new consideration not derived from ordinary shares, and
(c)throughout the period from their issue until the repayment those shares continued to be fully paid preference shares.
(4)For the purposes of subsection (3) consideration is derived from ordinary shares if (and only if)—
(a)it consists of the surrender, transfer or cancellation of ordinary shares,
(b)it consists of the variation of rights in ordinary shares, or
(c)it is derived from a repayment of share capital paid in respect of ordinary shares,
and for the purposes of this subsection it does not matter whether the ordinary shares are of the company or another company.
(5)In this section—
“
” means shares other than preference shares, and“
” means shares which—do not carry any right to dividends other than dividends at a fixed rate per cent of the nominal value of the shares, and
carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares included in the official UK list.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: