CGT and Reduction of Share Capital

CGT and Reduction of Share Capital

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CGT base cost is below subscription value due to rollover relief claimed on incorporation.
Reduction of share capital under Companies Act 2006 will therefore give rise to a CGT gain.
Are there any reasons why reductions of share capital should not take place on different occasions in different tax years to take account of annual exemptions  

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By Marion Hayes
21st Oct 2011 12:05

I am sorry but don't see the issue

reduction of share capital would just be paper for paper wouldn' t it?

I don't think that triggers a gain

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