The first paragraph above is beautifully clear, thank you. The relevant tax rules in UK are the same as yours in the US ~ so this really does seem to be the best way of doing things.
As you say, within MS Money, and having "returned (an appropriate amount of) capital" from the old company, and transferred it directly to the cash portion of the new, it is necessary to "buy" shares in the new company - to consume those
funds. Simply "adding" shares in the new company does not consume the capital returned.
Like you I find memos useful in situations like this, but surely the final word in your earlier post should be "division" and not "dividend" ?
Anyway, thanks again
Teabag