Individuals who acquired shares in Vodafone as a consequence of their original investment in Eircom shares, and who received a return of value of €1,000 or less, will not pay any tax. The guidelines detailing this relieving measure introduced by Finance Act 2014 are now available.

Individuals who received a “return of value” payment of €1,000 or less, arising from the receipt of “C Shares” under the terms of the return of value, will be treated as having received a capital sum subject to capital gains tax (CGT) rules rather than an income sum subject to income tax, PRSI and USC. As the base cost of the shares is higher than the amount of the return of value received, no CGT will be payable on returns of value of €1,000 or less.

Where someone arranged to pay the income tax, PRSI and USC via payroll they should request Revenue review their 2014 tax to have any overpayment refunded to them.

The guidelines also cover what to do if an individual wishes to have the “return of value” treated as income rather than a capital sum and the treatment of a loss arising on the “return of value”.