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Legislation
Corporation Tax Act 2010

Crossheading Distributions in respect of non-commercial securities

  • Section 1005 Meaning of “non-commercial securities”
  • Section 1006 Distributions exceeding consideration received for issue of security
  • Section 1007 Securities issued at premium representing new consideration
  • Section 1008 Consideration for issue of security exceeding amount of principal
  1. Distributions in respect of non-commercial securities
  2. Meaning of “non-commercial securities”

Section 1005 | Meaning of “non-commercial securities”

From legislation.gov.uk

For the purposes of paragraph E in section 1000(1) securities of a company are non-commercial securities if the consideration given by the company under the securities for the use of the principal secured by them represents more than a reasonable commercial return for the use of that principal.

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