What does "Distribution to be made in the form of a capital reduction"

[DimPrawn]

mean, in relation to a stock declaring a dividend?

TIA

[HairyArsedBloke]

Give the share holders back their money ?

[sweetandsour]

I think it means that instead of paying you some cash they are going to buy back and cancel some of their own shares with that money.

This will make the remaining shares worth more, all other things being equal.

[DimPrawn]

I think it means that instead of paying you some cash they are going to buy back and cancel some of their own shares with that money.

This will make the remaining shares worth more, all other things being equal.

Cool, that means the gain in stock price is subject to CGT and not income tax on a dividend I guess?

[sweetandsour]

Cool, that means the gain in stock price is subject to CGT and not income tax on a dividend I guess?

That's what I am thinking.

Of course, all other things are never equal so the benefit is unknown whereas a normal dividend would be a known amount of cash.