Hello, As a UK retail investor in my UK share portfolio I own shares in a FTSE100 UK company that having disposed of some non-core businesses wants to pay this year its shareholders some of the proceeds by a one-off payment proposed to take place by way of a return of capital. The company also plans to consolidate i.e. reduce the number of shares each shareholder owns. In financial terms the return of capital and consolidation in theory should be neutral with regards to value, i.e. the value of the "new" shares held plus the return of capital amount should equal the value of the old shares just prior to the corporate action. Assuming that the return of capital distributed is more than 5% of the value of the shares and also greater than £3,000, (a) will this one-off payment by the company reduce my cost basis on future disposal (I plan to hold the shares for many years) in terms of calculating the capital gains to declare or (b) will it give rise to a gain to be included in the self-assessment capital gains pages (SA108) for tax year 2022/23? In case (b) is the answer, where can I find a worksheet example of how to declare for capital gains purposes such a return of capital distribution please? Thank you. Best regards