Corporation Tax Act 2010 section 1117

Other interpretation

Section 1117 provides key definitions and interpretive rules that apply throughout Part 23 of the Act, which deals with company distributions.

• The terms "security" and "share" are given broad definitions: a security includes instruments that do not create or evidence a charge on assets, and a share includes stock and any other interest a member holds in a company.
• A distribution or consideration is treated as made or provided out of a company's assets whenever the cost falls on the company.
• Where unlisted securities are issued at a discount to their repayable amount, the principal secured is capped at the issue price unless the terms of issue are reasonably comparable with those of securities listed on a recognised stock exchange.
• Any action taken in respect of shares or securities by reference to holdings at a particular time is regarded as done to the holders at that time, or to the personal representatives of any holder who has died.