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.
- Cloud-based email services? 463 10
- Class 1A NIC on motorbike fuel 53 2
- HMRC Statements 44 1
- Goodwill on incorporation low level valuations 100 1
- Tax Planning for Family and Owner-Managed Companies 2015/16 316 6
- How did you recalculate your payroll fees 1,120 18
- NEST web services & Moneysoft 408 4
- Land Registry 297 4
- Car benefit or not? 2,251 19
- Excel First Tab/Last Tab missing in latest version(s) 374 4
- Share capital - death of a shareholder 624 20
- Annual Investment Allowance on Van 565 12
- Time recording 338 5
- Auto enrolment without a PAYE scheme? 150 2
- iris update 11.9.2 339 5
- Transfering bank balnces between old and new co. 276 8
- International priorities 184 2
- Auto enrolment confusion 1,698 37
- Company Structure 538 15
- Client tied in to accountant. Unfair contract? 2,803 38
- Self employed and HMRC Worldwide Subsistence Rates 746
- Interest paid - do new rules affect Tax Credits? 443
- Costly Accounting Software contract 383
- Directors' advances and credits 294
- Market Invoice (P2P invoice discounting) tax treatment 266
- DTA tie-breaker issue 256
- Tax on internet ad sharing income 236
- Credit against UK NI for NI paid to EEC Countries 215
- CGT for NOn UK residents 206
- Apprenticeship Levy 187