Section 1003 — Corporation Tax Act 2010: Redeemable share capital

Redeemable share capital 1003 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.