CTM15430 - Distributions: general: repayment of preference shares

CTA10/S1023 (3) (4) and (5)

The repayment of certain preference shares is not a repayment of share capital for the purposes of CTA10/S1022.

Preference shares are shares which:

  • do not carry any right to dividends other than dividends at a fixed percentage of the nominal value of the shares, and
  • carry rights in respect of dividends and capital that are comparable with those general for quoted fixed dividend shares.

CTA10/S1022 does not apply to the repayment of fully paid preference shares, if the preference shares:

  • were in issue at 6 April 1965, and continued to be fully paid preference shares from that date until their repayment, or
  • were issued since 6 April 1965 as fully paid shares wholly for new consideration that was not derived from ordinary shares, and continued to be fully paid preference shares until repayment.

Consideration 바카라 사이트˜derived from ordinary shares바카라 사이트™ is consideration consisting of:

  • the surrender, transfer or cancellation of ordinary shares of any company, or
  • the variation of rights in ordinary shares of any company, or
  • value derived from a repayment of share capital paid in respect of ordinary shares of any company.

For the purposes of CTA10/S1022, ordinary shares are shares other than preference shares.

Non-redeemable shares, CTA10/S1023 (1) and (2)

The issue of certain non-redeemable shares is not a bonus issue for the purposes of CTA10/S1022.

CTA10/S1022 does not apply if the bonus issue:

  • is of shares other than redeemable shares, and
  • occurs more than 10 years after the repayment of share capital.

This does not apply to a company within CTA10/S739 (broadly an unquoted or closely controlled company).