Mark McLaughlin looks at the meaning of ‘ordinary share capital’ and why it can be important for certain tax purposes.
Tax professionals will be acutely aware that ‘the devil is in the detail’ when it comes to dealing with tax issues. For example, the availability (or otherwise) of a particular tax relief may depend on a specific word or phrase in the legislation, the meaning of which might wrongly be taken for granted. Applying the required statutory definition of the word or phrase for tax purposes could have unexpected or unwelcome outcomes.
Alternatively, the definition could be unclear and, therefore, represent one of the numerous ‘grey areas’ that often cause difficulty and uncertainty for taxpayers and advisers.
‘Ordinary share capital’ <>
