Section 1003 | Redeemable share capital

(1)Subsection (2) applies if—

(a)a company issues redeemable share capital, and

(b)the issue is partly (but not wholly) for new consideration.

(2)The part (if any) of the share capital that is properly referable to the new consideration does not fall within paragraph C in section 1000(1).

(3)In determining, for the purposes of paragraph C in section 1000(1), the amount of the distribution constituted by the issue of any redeemable share capital, the value of the share capital is taken to be the sum of—

(a)the amount of the share capital, and

(b)the amount of any premium payable on redemption, in a winding up, or in any other circumstances.