Capital Gains Tax

Tax Treatment of Proposed Vodafone Return of Value to Shareholders

This guide sets the likely tax position of the proposed return of value in accordance with the Vodafone Document dated 10 December 2013 as it applies to Vodafone shareholders who acquired their Vodafone shares in exchange for Eircom shares in 2001. As the proposed return of value is not yet final, the guide is provisional and will be updated on finalisation of the return of value and related share consolidation.

Capital Gains Tax (CGT) is chargeable on gains arising on the disposal of assets, other than that part of a gain which arose in the period prior to 6 April 1974. Any form of property (other than Irish currency) including an interest in property (as, for example, a lease) is an asset for CGT purposes.

Rate of Tax

The standard rate in respect of disposals is determined based on the date on which the disposal was made as follows:

  • Disposals made:
  • from 6 December 2012 - 33%
  • from 7 December 2011 to 5 December 2012 - 30%
  • from 8 April 2009 to 6 December 2011 - 25%
  • from 15 October 2008 to 7 April 2009 - 22%
  • made on or before 14 October 2008 - 20%

The first €1,270 of an individual’s annual chargeable gains, net of allowable losses, is exempt.

Tax & Duty Manuals - Section 16 FOI Act

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