Return of capital by spec. dividend

[raysor]

I know this is probably a stupid question but haven't had the time to check the facts and work it out.
You own a stock trading at, say 300p and the compnay returns 200p of the capital by way of a special dividend, making the shares 100p.

The £2 spec. div is taxable as income at your tax rate.

If you sell the shares at 100p does that mean you have a capital loss of £2 that could be offset against CGT?

 

[raysor]

I know this is probably a stupid question but haven't had the time to check the facts and work it out.
You own a stock trading at, say 300p and the compnay returns 200p of the capital by way of a special dividend, making the shares 100p.

The £2 spec. div is taxable as income at your tax rate.

If you sell the shares at 100p does that mean you have a capital loss of £2 that could be offset against CGT?

Apparently you get a choice (at the time) to elect/chose between taking the spec. dividend as income or capital. Still investigating.