Preference shares

Dividends on preference shares are not tax allowable regardless of whether they are redeemable or irredeemable.

In the context of Paper AFM both redeemable and irredeemable are included in long term debt. Paper AFM is only concerned with gearing insofar it affects the riskiness of the shares. It is the fact that fixed interest is being paid that makes the shares more risky, and preference shares are effectively fixed interest regardless of whether they are redeemable or irredeemable.