It is much simpler than that
The original cost of the shares was € 1.10
The company then repaid you € 0.35
Your cost of the shares is now € 1.10 - € 0.35 = € 0.75
Thereis no tax to be paid until you dispose of the shares. If you dispose of them today for € 2.00 then your capital gain is € 1.25 per share and you will be taxed on this
for example if my shares were reduced from 2000 to 1500 shares
yes im really talking about another example of a different share actually its donegal investment group that had a share redemption so for every 8 shares they extinguished 5 shares and returned the capital to the shareholders so presumably i must pay the capital gains on those shares for which the capital was returned . by the way thanks for taking the trouble to answer these questionsOr do you mean that the number of shares was reduced ie the opposite of a share split so that for every 4 shares you now had 3 - there is no disposal in this case so no gain or loss
This seems wholly incorrect. Do part disposal CGT rules not apply?It is much simpler than that
The original cost of the shares was € 1.10
The company then repaid you € 0.35
Your cost of the shares is now € 1.10 - € 0.35 = € 0.75
Thereis no tax to be paid until you dispose of the shares. If you dispose of them today for € 2.00 then your capital gain is € 1.25 per share and you will be taxed on this
Yes, there is CGT involved. It wasn't clear in the OP post that this was a redemption - so effectively he disposed of 500 of his shares and CGT is due
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