On 10 May 1999 the ordinary share capital of the Company was consolidated on the basis of nine new ordinary shares of 5 5/9 pence for every ten ordinary shares of 5 pence held on 7 May 1999. The consolidation was linked to the payment of a special dividend of 12 pence per share on 23 June 1999.
On 5 July 1999 the acquisition of the AA by Centrica was announced. By the agreement subsequently, ratified by the AA, each fully paid up member on midnight of 4 July was entitled to a cash payment of ￡248.56, which was paid by cheque in mid-October 1999.
At the time, Centrica made available a low-cost share-dealing facility for eligible members who wished to invest all of their consideration in Centrica ordinary shares.
The payment was regarded as income by the Inland Revenue in the same way as company dividends. A tax voucher with the details was sent with the cheque and showed a tax credit of ￡27.62 and a cash payment of ￡248.56.