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
|A + B.|
A = the amount or value of the capital distribution.
B = the value of the shareholding retained at the date of the
- 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
|£8,000 + £7,000|