Share Capital Reduction | AccountingWEB

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.

There are 2 comments. Login or register to view them.

Pandora's Box

Nichola Ross Martin |
Nichola Ross Martin's picture

Clearance proceedure

DMGbus |
DMGbus's picture