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Return of capital

Income or capital

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A few years ago legislation was introduced to counter the following. A company, often listed, would propose a share reorganisation whereby the shareholder could choose to receive one of two share types - one with little value on which a dividend would be paid and then cancelled, the other being a redeemable share. Effectively being given a free choice between income and capital treatment on return of capital. I can't find the legislation that put a stop to that - can anyone help?

Thanks

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Replying to Justin Bryant:
By Ruddles
27th May 2020 18:36

Perfect - thank you, Justin

I must have looked in every Act but that one!

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