Section 1007 — Corporation Tax Act 2010: Securities issued at premium representing new consideration

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.