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HMRC internal manual

Capital Gains Manual

Capital distributions: definition: part disposal: rebasing

If there has been a capital distribution after 31 March 1982 and before 6 April 1988 you should apportion the 31 March 1982 value of the shareholding using the formula

B
 
A + B.

A = the amount or value of the capital distribution.

B = the value of the shareholding retained at the date of the

capital distribution.

EXAMPLE

  • 31 March 1982 value of shares £12,000.
  • 1985 a capital distribution of £8,000 is made. The market value of the remaining shares is £7,000.
  • The allowable expenditure on the shares based on the 31 March 1982 value is
£12,000 x £7,000 = £5,600.
         
    £8,000 + £7,000