Part 23

Company distributions
Chapter 2

Matters which are distributions

Distributions in respect of non-commercial securities

Securities issued at premium representing new consideration
1007
1
This section applies if any security of a company is issued at a premium representing new consideration (but see also section 1008).
2
In relation to a distribution in respect of the security, the reference in paragraph E 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.
3
In relation to a distribution in respect of the security, the reference in paragraph E in section 1000(1) to however much of the distribution represents a reasonable commercial return for the use of the principal secured by the security is to be read as a reference to the sum of—
a
however much of the distribution represents a reasonable commercial return for the use of the principal, and
b
however much of it represents (when regard is had to the extent to which distributions represent the premium) a reasonable commercial return for the use of 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)