Section 1018 — Corporation Tax Act 2010: The principal secured: special securities

The principal secured: special securities 1018 1 No amount is to be regarded for the purposes of paragraph F in section 1000(1) as representing the principal secured by a security so far as it exceeds any new consideration which has been received by the company for the issue of the security. This is without prejudice to section 1117(6).

2 Subsection (3) applies if—

a a security of a company is issued at a premium representing new consideration, and b there is a distribution in respect of the security.

3 The reference in paragraph F 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.