Increasing share capital

UK company with one shareholder has healthy retained profits and for commercial reasons wants to increase its share capital as current share capital is stated at £100. Is a stock dividend preferable to a cash dividend followed by reinvestment? If yes on what basis - is it just a case of it requiring less paperwork and cash movements are not required? What are the procedures for declaring a stock dividend - the same as a normal dividend?

Is there an obvious alternative method that would enable a corporation tax deduction for the company? 

Many thanks for any advice.

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Wouldn't a simple bonus issue be the simplest.

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