Share Capital Reduction
If a company consolidates 80,000 £1 shares into 10p shares what is the correct tax treatment if the £72,000 is paid to shareholder?
Is this a Capital Gain with a proportion of the original cost of the shares included?
Is the money transferred to distributable reserves to paid out as dividends in future?
Or can the money be released to the shareholders through loan accounts or as cash?
Any thoughts would be most welcome.