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Home / Simons-Taxes /Corporate tax /Part D5 Company distributions /Division D5.1 Company distributions /Types of distributions / D5.116 Bonus issues of redeemable shares or securities (paragraph C and D)
Commentary

D5.116 Bonus issues of redeemable shares or securities (paragraph C and D)

Corporate tax

There are several types of distributions as detailed in D5.102 and two of these categories relate to redeemable share capital and securities which may be treated as distributions under paragraphs C and D of CTA 2010, s 1000(1), respectively.

A distribution will arise if a company makes an issue of securities or redeemable shares and does not receive an equivalent value of new consideration in return, ie it is a bonus issue1.

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