Division D7.3 Companies with investment business, investment companies and investment trusts

Commentary

D7.321 Significant increase in investment company capital

Corporate tax
Corporate tax | Commentary

D7.321 Significant increase in investment company capital

Corporate tax | Commentary

D7.321 Significant increase in investment company capital

For this purpose, the capital of a company (to be expressed in sterling and rounded up to the nearest pound) consists of the total of the following1:

  1.  

    •     the amount of its paid up share capital (including any amount in the share premium account)

  2.  

    •     the amount of any debt incurred for money borrowed or capital assets acquired by the company

  3.  

    •     the amount of any debt incurred for a right to receive income created in favour of the company

  4.  

    •     the amount of any debt incurred for a consideration the value of which was (at the time it was incurred) substantially less than the amount of the debt (including any premium)

  5.  

    •     the amount of any outstanding redeemable loan capital

The amount of any debt includes any interest due on it.

A comparison has to be made

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