SCHEDULES

Schedule 28AChange in ownership of company with investment business: deductions

Part I Significant increase in company capital

Capital and amounts of capital

5

(1)

The capital of a company consists of the aggregate of—

(a)

the amount of the paid up share capital of the company;

(b)

the amount outstanding of any debts incurred by the company which are of a description mentioned in any of paragraphs (a) to (c) of section 417(7); and

(c)

the amount outstanding of any redeemable loan capital issued by the company.

(2)

For the purposes of sub-paragraph (1) above—

(a)

the amount of the paid up share capital includes any amount in the share premium account of the company (construing “share premium account” in the same way as in section 130 of the M1Companies Act 1985); and

(b)

the amount outstanding of any debts includes any interest due on the debts.

(3)

Amounts of capital shall be expressed in sterling and rounded up to the nearest pound.