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


(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.

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/1007 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-1007
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.