Treatment of odd-lot realisations on consolidation

[devnull]

I had holdings in a company listed on the LSE (not AIM) that had a consolidation on a couple of occasions.

Slightly unusually, the company gave me pro-rated new number of shares, and the "fractional parts" left over were sold on the open market collectively by the company, with the sales proceeds being distributed to the original holders proportionate to their fractional holdings. The total proceeds were small and incidental, circa £5, far less than the value of the original holding.

The question is: should these incidental realisations be treated as normal disposals according to usual CGT rules, or, more sensibly, should the remittances be deducted from the cost of the shares as you would do in, say, the case of a rights issue?

[pawncob]

https://www.gov.uk/hmrc-internal-manual ... l/cg51890p