Corporation Tax Act 2010 section 691

Meaning of "amount of capital"

Section 691 defines how to calculate the total amount of a company's capital for the purposes of the rules in sections 688 to 690, which deal with determining whether there has been a significant increase in a company's capital following a change of ownership.

• A company's capital is the sum of its paid-up share capital (including any share premium account balance), outstanding debts falling within section 453(2) (broadly, debts owed to loan creditors as defined for close company purposes), and outstanding redeemable loan capital.
• Outstanding debt amounts include any accrued interest due on those debts.
• All amounts of capital must be expressed in sterling.
• The definition of "share premium account" follows the meaning given in section 610 of the Companies Act 2006.