Vodafone’s Return of Capital to shareholders

As you may be aware, the Vodafone Group proposes to reorganise and return some capital to shareholders.  The background to this is that the group on 2 September, 2012 announced that it planned to sell its Verizon Wireless investment to Verizon Communications Inc.  Following is a link to the Revenue Commissioners website that deals with the majority of small Irish Investers who bought Eircom shares in 1999 and still retain the related Vodafone shares.

The important thing to note is if you opt for the return of Capital AND complete and return the relevant forms, the return will be subject to Captial Gains Tax and may effectively be tax free (as the return leads to the crystallisation of a Capital Gains Tax Loss) but if not the dividend will be subject to Income Tax and related levies and charges.

http://www.revenue.ie/en/tax/cgt/vodafone-shareholders.html

Also attached is an interesting article from the Irish Independent giving guidance on how to complete the bundle of forms Vodafone Investors received recently. Its well worth a read

http://www.irishtimes.com/business/personal-finance/vodafone-windfall-how-much-will-i-get-what-do-i-do-1.1653948#.UtZlJcMDBR0.email