Part 23Company distributions

Chapter 2Matters which are distributions

Redeemable share capital

1003Redeemable share capital

1

Subsection (2) applies if—

a

a company issues redeemable share capital, and

b

the issue is partly (but not wholly) for new consideration.

2

The part (if any) of the share capital that is properly referable to the new consideration does not fall within paragraph C in section 1000(1).

3

In determining, for the purposes of paragraph C in section 1000(1), the amount of the distribution constituted by the issue of any redeemable share capital, the value of the share capital is taken to be the sum of—

a

the amount of the share capital, and

b

the amount of any premium payable on redemption, in a winding up, or in any other circumstances.