Clarification:
If you conquer every region of a particular faction in its home theatre, it will be destroyed. That being so, capitals hardly matter much.
Let's say a European faction has 4 regions in Europe (its home theatre), and other regions in America and India. Now, you suddenly conquer its 4 in Europe, which means it is destroyed. Its regions in both America and India, either of which isn't the faction's home theatre, will simply come under the ownership of the local rebel factions.
So, if you take Great Britain's regions in Europe, its American colonies will automatically emerge as the United States and other rebels in the area.
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