Revenue eBrief No. 213/25
14 November 2025
Option to acquire shares in lieu of distributions (scrip dividends)
Tax and Duty Manual (TDM) Part 33-02-01 sets out the tax treatment under section 816 TCA 1997 of shares issued in place of cash dividends, at the option of the shareholder. These are often referred to as “scrip dividends”. The TDM has been revised to remove material that is no longer relevant and to provide additional guidance and examples.