Section 1004 — Corporation Tax Act 2010: Securities issued otherwise than for new consideration

Securities issued otherwise than for new consideration 1004 1 Subsection (2) applies if—

a a company issues a security, and b the issue is partly (but not wholly) for new consideration.

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

3 In determining, for the purposes of paragraph D in section 1000(1), the amount of the distribution constituted by the issue of any security, the value of the security is taken to be the amount of the principal secured, including any premium payable—

a at maturity, b in a winding up, or c in any other circumstances.