Tax Treatment of Return of Value to Vodafone Shareholders

A final version of this Guide which relates solely to former Eircom shareholders who acquired their Vodafone ordinary shares in exchange for Eircom shares in 2001 has been published on the Revenue website. It sets out the tax position in relation to the Return of Value and Share Consolidation which was effected on 21 February 2014.

Depending on choices made by Vodafone shareholders, the Return of Value may be subject to capital gains tax treatment or income tax treatment.

The Guide:

• Confirms that shareholders who received "B" Shares (Capital Option) have no capital gains tax liability on their disposals
• Confirms that shareholders aged 65 years of age or over who received "C" Shares (Income Option) can claim exemption from income tax for 2014 if their total income for the year, including pensions and other income (such as Vodafone/Verizon dividends), is less than:
  • €18,000, if single, widowed or a surviving civil partner, or
  • €36,000, if married or in a civil partnership.
• Explains for shareholders who received "C" Shares (Income Option) how to return details of dividends received to Revenue, depending on whether they are taxed through the PAYE System or through the Self Assessing System.

29 May 2014