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HMRC internal manual

Capital Gains Manual

Capital distributions: definition

The capital distributions you are most likely to see in practice are

  • distributions made by a liquidator in the course of a winding-up. Separate instructions on liquidations are at CG40400 onwards
  • cash payments made when one company takes over another and issues its own shares or debentures as part of the consideration for the shares it is acquiring. Separate instructions on share exchanges are at CG52521 onwards
  • distributions made on a repayment or reduction of a company’s share capital.