Wednesday, 20 October 2004

Questions (113)

Finian McGrath

Question:

213 Mr. F. McGrath asked the Minister for Finance the reason a person (details supplied) in Dublin 9 received a bill from the Collector General for a capital gains tax liability of €359.80 against cash received on free First Active shares; and if he will make a statement on the matter. [25742/04]

View answer

Written answers (Question to Minister for Finance)

I have been advised by the Revenue Commissioners that they have written to First Active members who received payment from the Royal Bank of Scotland in respect of its acquisition of First Active. As with previous disposals of shares in this type of situation, this transaction gives rise to a potential capital gains tax, CGT, liability on the members in respect of the disposal of their First Active shares. Any CGT liability on disposal of these shares is due for payment on or before 31 October 2004. First Active shareholders have been notified by Revenue of their CGT obligations.

From the information supplied to the Revenue Commissioners, the person referred to by the Deputy received a payment of €3,069 from Royal Bank of Scotland and, provided she had no other gain or loss, her CGT liability is calculated as follows:

Cash Received

€3,069

Allowable Costs

Nil (as the shares were acquired at no cost they have a nil base)

Chargeable Gain

€3,069

Less Personal Exemption

(€1,270)

Net Chargeable Gain

€1,799 @ 20% = €359.80

The chargeable gain above can be reduced by any allowable losses arising in 2004 together with any unused allowable losses from disposals of assets chargeable to capital gains tax in any previous year.

I have also been informed by the Revenue Commissioners that the Revenue documentation sent to the person includes a computation sheet and a payslip. The payslip and payment should be sent to the Collector General's office. The documentation issued also includes a special Revenue help-line number for any further assistance required by the person referred to by the Deputy.