Schedules
SCHEDULE 2Transitionals and savings etc
Part 23Company distributions
Bonus issue following repayment of share capital
105
1
Section 1022(3) (amount paid up on bonus share capital treated as a distribution) does not apply if the share capital mentioned in section 1022(1)(a) was repaid before 7 April 1965.
2
Section 1023(3) (which limits the cases in which section 1022(3) applies) applies only if the preference shares were issued after 6 April 1965 (but see sub-paragraph (3)).
3
Section 1022(3) (amount paid up on bonus share capital treated as a distribution) does not apply if the repaid share capital referred to in section 1022(1) consists of fully paid preference shares and—
a
those shares existed as issued and fully paid preference shares on 6 April 1965, and
b
throughout the period from that date until the repayment those shares continued to be fully paid preference shares.
4
In order for section 1023(1) to apply the issue of share capital there mentioned must take place after 5 April 1973 (as well as more than 10 years after the repayment of share capital in question).