VCM55220 - VCT: VCT qualifying holdings: meaning of 바카라 사이트˜relevant fixed rate preference shares바카라 사이트™
ITA07/S313(7)
Fixed-rate preference shares are defined as shares:
- which were issued wholly for new consideration (see CTM15140), and
- which do not carry any right either to conversion into other shares or securities of any description or to the acquisition of additional shares or securities, and
- which do not carry any right to dividends other than dividends which:
a) are of a fixed amount or at a fixed-rate percentage of the nominal value of the shares, and
b) together with any sum payable on redemption, represent no more than a reasonable commercial return on the consideration for which the shares were issued.
We take a broad view of what is a 바카라 사이트˜reasonable commercial return바카라 사이트™.
This definition is slightly different from the definition of the same phrase given in CTA10/S160.
Shares which carry no dividend right at all cannot be fixed-rate preference shares. A 바카라 사이트˜fixed rate바카라 사이트™ means an unchanging rate; thus a rate which is specified as 5% for the first 5 years and 10% thereafter is not fixed until the first five years are over.
바카라 사이트˜Relevant바카라 사이트™ fixed-rate preference shares are ones which do not currently carry voting rights. (Normally fixed-rate preference shares carry voting rights only in certain specified circumstances, for example if the company defaults on the payment of dividends on the shares).