Section 691 — Corporation Tax Act 2010: Meaning of “amount of capital”

Meaning of “amount of capital” 691 1 This section applies for the purposes of sections 688 to 690.

2 The amount of the capital of a company is the sum of—

a the amount of the paid up share capital of the company, b the amount outstanding of any debts incurred by the company which are within section 453(2),

and c the amount outstanding of any redeemable loan capital issued by the company.

3 For the purposes of subsection (2)—

a the amount of the paid up share capital includes any amount in the share premium account of the company, and b the amount outstanding of any debts includes the amount of any interest due on the debts.

4 Amounts of capital are to be expressed in sterling.

5 In this section “ share premium account ” has the same meaning as in section 610 of the Companies Act 2006.